TransCanada has reapplied for their Keystone Pipeline permit, appealing to Mr. Obama’s own stated goals of boosting American energy supplies. The Washington Times reports,
The State Department last year tried to put off a decision about TransCanada’s first application until after the election, arguing it needed more time to study the issue. That move delighted the president’s environmental allies who fear a future catastrophe, but angered many of his labor union supporters, who say the pipeline will produce jobs.
Congress then passed a bill requiring the president to expedite his decision, and faced with the tighter deadline the State Department ruled against the application.
Now, Republicans said Mr. Obama has a do-over.
Indeed. As I’ve stated in prior posts, passage of Keystone Pipeline project is important because the very fact of a project of this magnitude moving ahead has an immediate effect on the markets by changing the traders’ expectations of future supply.
Fox Business has noted that
For the Obama administration, the development has been politically troublesome, pitting environmentalists opposed to increased fossil fuel use and pipelines through sensitive areas against unions and other Democrats who say it will create badly needed jobs in a shaky economy.
With this question coming up within 6 months of an presidential election, it will be interesting to see if Obama continues to pander to his environment base, or appeal to voters who wish to see job creation and economic recovery.