Keystone Pipeline Fails to Get Senate Approval

A proposal for the pipeline, long a controversial issue in both the US and Canada, was created roughly six years ago, and envisions the transport of bitumen from Canada’s oil sands to refiners down in America’s Gulf Coast. It places the pipeline on a path from Alberta through Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas.

Alberta-based TransCanada (TSX:TRP) has argued that the pipeline would create thousands of jobs, while opponents have said few permanent jobs would be created, also pointing out that its environmental impact could be devastating.

Senator Mary Landrieu of Louisiana, chairwoman of the Senate Energy and Natural Resources Committee, had led the charge in favor of the pipeline in anticipation of competing in a runoff election in early December.

Speaking to reporters after Tuesday’s vote, Landrieu remained optimistic about the future of the project. “For jobs, the economy, independence and energy independence this is an important fight,” she said while flanked by supporting senators Joe Manchin of West Virginia and Heidi Heitkamp of North Dakota.

Manchin and Heitkamp echoed her stance and added that the project would have helped America in its ongoing battle to find secure sources of energy and remain independent of other nations.

“It’s not just about a pipeline,” said Heitkamp. “It’s about energy policy.”

The US House of Representatives held a similar vote on Friday, approving the legislation. The vote in the Senate was the next necessary step.

However, despite pressure from both the House of Representatives and the Senate, President Barack Obama was not expected to sign the bill into law — the Obama administration previously said it will not offer a final decision on the project until a Nebraska court has decided on the legality of running the pipeline through the state.

Securities Disclosure: I, Nick Wells, hold no direct or indirect investment in any of the companies mentioned in this article.