The Obama administration has made the Keystone XL pipeline a priority for President Barack Obama’s climate and energy agenda.
But as Keystone has become a political flashpoint, a new business model for extracting oil from the Canadian tar sands has emerged.
The Keystone XL Pipeline, which has been under construction since 2006, would carry tar sands oil to refineries in Texas and Louisiana to be refined into crude oil.
But it would also carry Canadian tar sand oil from Canada’s tar sands fields to refiners in the United States.
The company behind Keystone XL, Enbridge Inc., recently launched a new oil-sands pipeline to carry Canadian crude oil from Alberta, Canada to refines in the Gulf Coast.
The project would cost $4.6 billion.
It would link the Keystone pipeline to the proposed Bakken oil fields, which lie in the heart of North Dakota.
Keystone XL has been a political lightning rod for climate change advocacy in the U.S. Oil sands are made up of the same carbon-rich oil as tar sands, but they are more difficult to extract than tar sands.
As tar sands crude is refined, it emits more carbon dioxide than the amount of carbon dioxide that comes out of a gallon of gasoline.
It takes twice as much time to get tar sands from the ground, and as much as five times as much to extract it.
Enbridge has been trying to build its Keystone XL oil pipeline.
The company has been negotiating with landowners in North Dakota and the Bakken area in order to build the pipeline.
It is currently negotiating with three landowners in the Dakotas.
In order to get a pipeline built, the company will need to raise funds from investors, according to the Associated Press.
Enbridge plans to raise $1 billion from investors over the next year.
The Associated Press reported that Enbridge has received more than $300 million in investment support from Enbridge, Canadian Imperial Bank of Commerce, Canadian Natural Resources and other oil companies.
According to the AP, Encentre said in a press release, “The $1.6-billion project will create thousands of construction jobs, create tens of thousands of new jobs, and help to increase the United State’s oil and gas productivity and the energy security of its citizens.”
This pipeline has been controversial.
Some environmentalists say it will be a major economic boon for the U:S.
In December, President Obama called Keystone XL “an environmental disaster.”
The pipeline would transport the oil from Canadian tar-silt fields to a facility in New Brunswick, Canada, where it would be refined.
Encentres oil sands pipeline would also run through Nebraska and Illinois.
It could be built under the same route as the Keystone.
EnCentre said it expects the project to create thousands and thousands of jobs.
Enca, an energy company based in Alberta, also has proposed a pipeline that would transport oil from its oil sands facilities in Alberta to refiner terminals in New York and Pennsylvania.
But Enbridge is proposing a pipeline to transport oil sands crude from Alberta to the refineries that will not be built.
EnBridge has said that the pipeline would “support a new global industry that would bring more American jobs and create more jobs in the region.”