Obama administration nixes Keystone XL pipeline

World Today

The Keystone Steele City pumping station, into which the planned Keystone XL pipeline is to connect to, is seen in Steele City, Neb., Tuesday, Nov. 3, 2015. TransCanada, the company behind the project, said Monday it had asked the State Department to suspend its review of the Canada-to-Texas pipeline, citing uncertainties about the route it would take through Nebraska. (AP Photo/Nati Harnik)

President Barack Obama agrees with U.S. State Department to reject Canadian energy giant TransCanada’s application to build the Keystone XL pipeline.

In this Jan. 16, 2015 file photo, trees dominate a field through which the Keystone XL pipeline is planned to run, near Bradshaw, Neb. The company behind the controversial Keystone XL pipeline from Canada to the U.S Gulf Coast has asked the U.S. State Department to pause its review of the project. TransCanada said Nov. 2, 2015, a suspension would be appropriate while it works with Nebraska authorities for approval of its preferred route through the state. (AP Photo/Nati Harnik, File)

In this Jan. 16, 2015 file photo, trees dominate a field through which the Keystone XL pipeline is planned to run, near Bradshaw, Neb. (AP Photo/Nati Harnik, File)

Obama announced the news from the White house Friday morning, saying the pipeline would not serve national interests or lower gas prices for American consumers.

The decision caps a 7-year saga that became one of the biggest environmental flashpoints of Barack Obama’s presidency.

Killing the pipeline allows Obama to claim aggressive action on the environment. That could strengthen his hand as world leaders prepare to finalize major global climate pact next month in Paris that Obama hopes will be a crowning jewel for his legacy.

Yet it also puts the president in a direct confrontation with Republicans and energy advocates that will almost surely spill over into the 2016 presidential election.

Story by the Associated Press