Obama may lose the support of the environmental groups he won over while campaigning for re-election. The approval of the pipeline would go against his environmental promises because of the carbon emissions caused by the production of tar sands oil. This decision may backtrack all of the environmental strides the President has made. For the Sierra Club and other environmental groups, they view the approval of the pipeline as a betrayal and a contradiction to Obama's promises to make the climate change a top priority of his second term.
Canada's government has stated that the country's economy, employment and national security will benefit from the Keystone project despite being widely protested by environmental groups. According to the New York Times, Canada has powerful allies in the United States labor movement, which is pushing for the pipeline because proponents say it would generate tens of thousands of jobs, and in big companies like Exxon Mobile and Chevron that are heavily invested in the oil sands fields. "The signal of a rejection of a permit by the president would be a significant change in the Canada - U.S. relationship," said Greg Stringham, the Canadian Association of Petroleum Producers' vice president for oil sands and markets.
Reuters sources say the decision may be delayed until June.
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