Chu signals support for proposed oil pipeline

Energy Secretary Steven Chu signaled this week that he supports a controversial proposed oil sands pipeline project being considered by the Obama administration.

The administration is reaching the tail end of its multi-year review of TransCanada’s Keystone XL pipeline, which would carry oil sands from Alberta to refineries on the Texas Gulf Coast. The State Department is expected to make a final decision by the end of the year.

Chu, in a sit-down interview on Tuesday with the television program energyNOW!, did not say directly whether he supports approving the project, but touted its potential benefits.

Canada is a more stable supplier of oil than many other countries, Chu said.

“It’s certainly true that having Canada as a supplier of our oil is much more comforting than to have other countries supply our oil,” Chu said.

Chu also argued that technologies used to extract Canadian oil sands are “improving dramatically.”

“[T]he companies that are extracting these tar sands are making great strides in improving the environmental impact of the extraction of this oil and will continue to do so, and they should be encouraged and pressed to do so,” Chu said.

The Keystone XL project represents a tradeoff, Chu argued.

“In the end it’s one of those things where it’s not perfect, but it’s a tradeoff,” he said, noting that the final decision will be made by the State Department, not the Energy Department.

The 1,700-mile proposed pipeline has the support of the oil industry and many Republicans, who argue that it will boost the economy and help make the country less reliant on Middle Eastern oil.

But environmental groups and others have ramped up their opposition to the project in recent months, putting increased political pressure on President Obama to reject the pending permit application.

Critics say the pipeline exposes vulnerable areas of the country to potential oil spills, and raise concerns about the high levels of greenhouse gases emitted during oil sands production.

Notably, Nebraska Gov. Dave Heineman (R) urged Obama on Wednesday to reject TransCanada's permit application.