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Media Note
Office of the Spokesman
Washington, DC
March 14, 2008


Keystone Pipeline Presidential Permit

On March 14, the Department of State issued a Presidential Permit authorizing TransCanada Keystone Pipeline LP to construct, operate and maintain facilities related to the Keystone crude oil pipeline project. The Keystone pipeline will extend 1,300 miles from the Canadian border through the U.S. Midwest. When fully operational, the Keystone pipeline is anticipated to increase U.S. oil imports from Canada by an amount equivalent to as much as 4.5 percent of total U.S. daily imports.

Canada is the United States' largest supplier of oil, natural gas, and electricity. The Department has determined that issuance of the permit to TransCanada Keystone Pipeline LP is in the national interest, in part, because it increases U.S. market access to crude oil supplies from a stable and reliable trading partner, Canada, that is in close proximity to the United States.

Canadian oil represents a safe, secure supply for the North American market. In 2004, Canada became the largest supplier of crude oil to the United States. In 2006, Canada supplied the United States with 2.3 million barrels of oil per day (mbd), equivalent to 17% of total U.S. imports.

The permit was signed in the State Department’s Treaty Room by the Undersecretary of State for Economics, Energy and Agriculture Affairs, Reuben Jeffery III, who also serves as the Department’s International Energy Coordinator. Canadian Ambassador Michael Wilson witnessed the signature. The United States and Canada have a wide array of bilateral and multilateral mechanisms to discuss energy and the environment, and will continue to address the importance of mitigating greenhouse gases from all sources of energy production.

Prior to making its determination to issue the permit to TransCanada Keystone Pipeline LP, the Department completed an environmental review of the entire project. All public documents related to the Department’s decision regarding TransCanada Keystone LP’s application can be downloaded at www.keystonepipeline.state.gov.

2008/192


Released on March 14, 2008

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