Demonstrators protest against the Keystone XL oil pipeline outside the White House on August 23, 2011. | Photo: Josh Lopez/Wikipedia

The Obama administration, citing unreasonable and premature request from the GOP deadline, formally denied permit of the controversial Keystone XL oil-sands crude pipeline deal, ahead of schedule- effectively killing TransCanada Corp's potential $7Billion oil export plans.

Obama and the administration responded in an official announcement, "the rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline's impact, especially the health and safety of the American people, as well as our environment. As a result, the Secretary of State has recommended that the application be denied. And after reviewing the State Department's report, I agree."

After the announcement, President Obama called Canadian Prime Minister Steven Harper to give him his decision. The Prime minister "“expressed his profound disappointment” with the Keystone decision, and will seek alternative routes for export immediately.

The Keystone XL project has been an issue of contention since 2008, when TransCanada proposed.

Oppositions to the Alberta origin energy source, argues that the process and the subsequent transportation of the oils through nine US states (ND, MT, SD, NE, KS, MO, IL, OK, TX) will dramatically alter and damage the environment (via "strip mining" and "toxic emissions), at the same time being unable to produce the promised long term job opportunities and oil dependency stabilization, the plan originally justified.

However, proponents of the permit cites US national security is at stake, along with built-in 3 Million man hours (as indicated in Congress on record by TransCanada and supporters) for workers on the project. TransCanada Corp, the company which wants to build the pipelines, in their press release, says the project will:

"...put 13,000 Americans to work to construct the pipeline - pipe fitters, welders, mechanics, electricians, heavy equipment operators, among other jobs - in addition to 7,000 manufacturing jobs that would be created across the U.S. Additionally, local businesses along the pipelineroute will benefit from the 118,000 spin-off jobs Keystone XL will create through increased business for local goods and service providers."

A key backer of the proposal U.S. Chamber of Commerce president Thomas Donohue, said the decision by the Obama administration was obviously "politically motivated and will make the U.S. more dependent on foreign nations "which don't share our interests". (The U.S. Chamber of Commerce is a non-governmental lobbying group. The federal U.S. Department of Commerce is not associated with the U.S. Chamber of Commerce).

The alternative route for TransCanada is more likely to the western front of Canada, in the efforts to penetrate the Asian markets for the crude, in the light of this announcement.

Jason Kim for DailyHarrison.com | Contact Jason @jasonsjkim