Obama Administration Sidelines XL Pipeline Project

The U.S. State Department says it will study a new route for the $7 billion Keystone XL Canada-to-Texas oil pipeline. The decision will delay any final approval beyond the U.S. 2012 election and spare U.S. President Barack Obama a politically risky decision during an election year.

The decision was a victory for environmental groups, who say producing oil sands crude emits large amounts of greenhouse gases. It was a blow to TransCanada Corp, which planned to build and operate the conduit.

(More on Keystone XL pipeline's future . . . )

Keystone Decision a Setback for US-Canada Relations