In response to intense pressure being applied by officials in Nebraska and restive environmental activists, the Obama administration has announced that it intends to review the route of the controversial Keystone XL oil pipeline. By doing so, the administration has effectively postponed any decision about the pipeline's fate until after next year's Presidential Election.
Measuring 1,379 miles long, the US section of the pipe is meant to run through Buchanan, Clinton, as far as Doniphancounties in Kansas. The pipe ends in Alberta, Canada.
A statement from the State Department confirmed that it was demanding a review of alternate routes to avoid the Sand Hills region of Nebraska, an environmentally-sensitive region of the state. The decision was reached after environmental activists warned that the pipeline - were it to rupture - posed a danger to the region.
In a recent television interview, President Obama insisted that the decision about the future of the pipeline would ultimately rest with him. He has, however, tried to distance himself from the State Department's recent statement about the pipeline, suggesting that it was not a political move on his part.
"I support the State Department's announcement today regarding the need to seek additional information about the Keystone XL pipeline proposal," he said in a statement.
"Because this permit decision could affect the health and safety of the American people as well as the environment, and because a number of concerns have been raised through a public process, we should take the time to ensure that all questions are properly addressed and all the potential impacts are properly understood."
President Obama insisted that he remains committed to striking the right balance between increasing domestic oil and gas production and reducing the US's impact on the environment. However, Glenn Hurowitz, an environmental activist, has hit out at the President's refusal to resolve the contentious issue before the 2012 election. In an emailed statement, Mr Hurowitz asked: "Is the price of an environmentalist's vote a year's delay on environmental catastrophe? Excuse me, no."
The Canadian government and officials from the oil industry, on the other hand, have pointed to the fact that the delay lessens the economic benefits of the proposed construction project, which is estimated to cost $7 billion and will carry 1.1 million barrels of oil per day.
TransCanada, the Canadian pipeline company behind the project, has revealed that it is willing to work with the State Department to find a new route. However, it warned that further delays could kill the project completely. Tens of thousands of construction jobs and billions of dollars in tax revenues would be lost in the process, the firm said.