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There is breaking news now on Fox News Channel this just in from Washington Republican leaders are about to hold a news conference.
On that controversial Keystone Pipeline.
This after industry sources tell Fox News the State Department is going to reject the project later today.
You may remember this pipeline was a major sticking point at last year's tax cut negotiations the pipeline would in theory run from Canada through several states and down to Texas.
Critics have said the government needs more time to study the pipelines effect on our environment.
But supporters including many Republicans say the pipeline would create thousands of jobs.
And now Republican leaders are piling on the president James Rosen that that the State Department force now what what's the latest that we have here James.
-- literally just minutes ago the State Department press office emailed out a statement from the State Department spokeswoman.
Victoria new -- saying that the State Department has recommended to President Obama and he has concurred in this recommendation.
That further consideration of this pipeline would not serve.
The national interest now keep in mind this would actually have been in the TransCanada corporation's second Keystone Pipeline.
Keystone -- also originates in the oil sands of Alberta Canada and it is already up and running in delivering roughly 500000.
Barrels of crude oil a day.
Two refineries and Oklahoma and Illinois.
There earlier today the State Department spokeswoman.
Defended president Obama's initial move this past November to delay his overall decision on this project.
We held open meetings in all of the affected states and we went through this at the time.
In Nebraska in particular we had very very strong -- -- About.
About the environmental issues about the routing -- center and it was on the basis of that that we decided that more work needed to be done.
Just sixteen months ago secretary of state Clinton herself told a San Francisco audience.
She is inclined she was inclined to approve keystone XL that's the second pipeline.
Because quote were either going to be dependent on dirty oil from the Persian gulf.
Or dirty oil from Canada on quote obviously now.
A change of heart by the Obama administration shut up and we're about to -- from Republican leaders on this issue what what is it that Republicans think they can do.
To change this decision or or what.
-- already -- we are hearing that Republican lawmakers in the house and senate are plotting.
To revive this project through legislation somehow.
Perhaps by attaching it to some unrelated measures such as the payroll tax cut extension that they believe President Obama would effectively.
Be forced to sign on the house floor today however even one Democrat could be heard lamenting today's early reports.
The pipeline is going to be built the question is whether it lands on the Gulf Coast of the United States or the West Coast of Canada.
And make no mistake if it ends up on Canada's coast that oil will only continue westward to China and their markets.
What's confusing mr.
speaker is that he has been saying that we can't wait for job creation but with this decision.
He's saying that we can't wait for thousands and thousands of private sector jobs here in the United States and that we can wait.
For energy security.
speaker this is the wrong decision at the wrong time.
And now live news conference coming from the Republicans in fact over here John Boehner is just beginning let's listen -- jobs.
The president was given the authorities -- to block of project only.
And only if he believes it's not in the national interest.
Of the United States.
Is it not in the national -- -- create tens of thousands of jobs here in America with private investment.
Is it not in the national interest to get energy resources.
From an allies like Canada have supposed to some countries in the Middle East.
President it's it'll do anything that he can -- jobs.
Today that promise was broken.
President expedite of the approval the -- drove loan.
But -- program project.
That's been under review for over three years.
Yesterday the president's own jobs council.
That's said the energy pipeline projects.
Like this one can create hundreds of thousands of American jobs.
But the unions supported.
Of the states along of the proposed routes both supported.
And that has bipartisan support here in the congress of the United States.
The president decided to rejected anyway.
-- all stand up to his political base.
Even in the name of creating American jobs.
And now Canada and ask him gonna have to look to other nations like China to sell its oil reserves -- Some of the president's policies are making the American economy worse -- of them better.
And this latest decision.
Is just but the latest example.
Others say this this is not the end of a fight.
Republicans in congress will continue.
To push this because it's good for our country and it's good for our economy and -- of the American people especially those who are looking for work.
The commission speaker Tim Griffin.
Today President Obama has decided to create jobs in China instead of the United States.
Why -- I say that I went to the Canadian embassy.
Weeks ago met with officials there they said they want to do business here in the United States.
If they can't do business here.
They have to take this oil sand somewhere to have them refined they said they would be that in China.
This decision impact.
Not only that -- country but specifically my district the second congressional district in Arkansas.
We have a company wealth -- While -- makes the pipe.
For the keystone pipeline.
And they laid off some workers.
Right after the president.
Said that this decision.
Would be after the next election.
The folks at well spun were hoping.
The opposite decision today approving the pipeline I spoke with a little bit ago they -- their concerns are number one.
That now they have all this -- Hundreds of miles -- sitting around it's got a flood the market reduce the cost -- And they may have to lay off more workers because of that.
Well as you may have -- I was so there is a whole lot at play here not the least of which in fact probably primarily.
This is about politics the president has issued a statement explained that this wasn't about the merits of the project from his point of view.
But about and what he calls arbitrary deadline which the Republicans put in place for political reasons -- read you a statement we just got from the White House.
And you'll get back to James Rosen for more on the Republican side of this.
This is from president.
Earlier today -- -- the secretary of State's recommending recommendation on the pending application for the construction the keystone XL pipeline as the State Department -- clear last month.
-- rushed and arbitrary deadline insisted on by congressional Republicans.
Prevented a full assessment of the pipelines impact especially the health and safety of the American people.
As well as our environment.
As a result the secretary of state has recommended the application be denied after reviewing the State Department report.
I agree writes the president.
It goes on this announcement is not a judgment on the merits of the pipeline.
But the arbitrary nature of the deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people.
The president writes I'm disappointed that Republicans in congress forced this decision.
But it does not change my administration's commitment to American made energy that creates jobs and reduces dependence on oil.
He goes on to say under my administration domestic oil and natural gas production is up while imports of foreign oil are down.
In the months ahead the president -- we will continue to look for new ways to partner with the oil and gas industry decree to increase our energy and security.
Look for new ways to partner including the potential development of an oil pipeline from Cushing Oklahoma to the Gulf of Mexico.
Even as we sit higher efficiency standards for cars and trucks and invest in alternatives like biofuels and natural gas.
And we will do so in a way that benefits American workers and businesses without risking the health and safety of the American people and the environment.
-- that said let's turn back to James Rosen the Republicans have said what the president calls.
An arbitrary deadline has been set by those Republicans the president says he wanted to wait.
Republicans point out he wanted to wait until after the election was over help us James.
Well the core issue here -- is that the Obama administration wanted to give some more time so that.
Of a pipeline could potentially be rerouted so that it wouldn't effective but the particular -- which -- drinking -- -- eight -- that's located in the state of Nebraska.
The legislation that the president's referring to didn't make any reference Nebraska it just -- -- force the president to make an up or down yes or no decision on the pipelines.
-- by February 21 in fact Nebraska would have had unlimited time to study alternate routes as it stands now this is going to be an issue on the campaign trail we have forty -- response from a number of the Republican candidates for president notably former house speaker Newt Gingrich who calls today's decision quote stunningly stupid.
The energy industry says claims.
That if this pipeline project seven billion dollars had gone through it would have immediately created some 20000 direct jobs in the United States.
Jobs by the year when he fifteen -- James Rosen at the state department for so the news is breaking for now at least the Keystone Pipeline is dead.
The president says it's because Republican said an arbitrary deadline and they didn't have time to study the thing to make sure be safe for everybody.
The Republicans say well Newt Gingrich says it stunningly stupid.
And the Republicans say this fight is not over they have gathered on -- to talk about what a horrible decision it was.
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