A letter submitted by the U.S. Environmental Protection Agency (EPA) to the State Department gives new weight to concerns the proposed $8 billion Keystone XL pipeline, destined to carry crude from the Alberta oilsands to export facilities along the Gulf of Mexico, will have significant climate impacts.
The EPA letter suggests existing analyses – which downplay the importance of greenhouse gas emissions associated with the project – are out of date and require revision in light of low global oil prices.
Due to the plummeting of oil prices and related market changes “it is important to revisit [the] conclusions” of previous reports, EPA told the State Department.
“Given recent large declines in oil prices and the uncertainty of oil price projections, the additional low prices scenario in the (State report) should be given additional weight during decision making, due to the potential implications of lower oil prices on project impacts, especially greenhouse gas emissions.”
The State Department is due to release a revised analysis of the Keystone XL project and is currently gathering comments from the EPA and other agencies.