Controversial pipeline pits environment vs. economy

Ardent advocates and opponents of the proposed Keystone XL pipeline came out to Capitol Hill on Friday for one last chance to have their opinions heard at the U.S. State Department's final public hearing on the controversial $7 billion project.

If approved by President Barack Obama, the pipeline would ship millions of barrels of raw bitumen each week from the Alberta oilsands to Texas refineries.

"For Alberta, what this will mean is the tarsands will be given the green light to grow - and that means the impacts to land, water, local communities, and then exacerbating a growing climate change will grow and get worse," said Greenpeace activist, Mike Hudema, in Edmonton.

Larry Schweiger, with the National Wildlife Federation, which is America's largest conservation agency, also expressed concern about the potential impact the pipeline could have on his country's environment. "At a time when America needs investments in homegrown, clean energy jobs, and solutions to global warming, turning to Canada for dirty fuels is the wrong way to go," he argued in Washington.

But those on the other side of the argument are focusing on the job-creation potential of the TransCanada pipeline project.

"Nearly 30 million people in (the US) can't find work, and many of them have to make choices everyday between buying enough groceries and the power bills," said TransCanada President and CEO, Russ Girling. "If Keystone XL is approved, TransCanada will put 20,000 Americans to work right away."

With the U.S. struggling with a 9.1 percent unemployment rate, Greg Anderson, an expert in US-Canada relations, believes that the promise of jobs is what will ultimately force President Obama to approve the project.

"In an election year, I think, unfortunately, for the environmental crowd, jobs are going to trump the environment. I expect that it's going to be improved," said Anderson, also mentioning the increased stability the expansion could bring to the Alberta oil sands.

"Canadians keep talking about sending more of it to China and pipelines over the mountains to the West coast, I mean, those are things that are years away, whereas this pipeline could be more immediate and could bring some certainty to those projects that are on the books for Northern Alberta."

Given how much is at stake for Canada's economic powerhouse, Prime Minister Stephen Harper re-iterated his support for the project from Regina on Friday.

"I think this decision is an absolute no-brainer for everybody concerned," he said. "It makes sense, that this goes ahead, but obviously it's up to the Americans to see their own best interests."

That decision is still being deliberated, though, according to US Assistant Secretary of State, Kerri-Ann Jones. "We've heard views from all different sides of this story, and what we want to make sure you understand is that we have not made any decision."

Anderson adds that while the hearings on Capitol Hill may have allowed both sides to be heard, at the end of the day, the final decision rests with the US President, who is expected to have one made by the end of the year.


With files from Laurel Clark and Reid Fiest, Global News.