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Democrats block Keystone XL bill in Senate

As expected, Senate Democrats prevented a bill authorizing construction of TransCanada’s Keystone XL pipeline from advancing in the Senate.

The fate of the pipeline still remains with the State Department, because the pipeline would cross from Canada through the United States.

President Obama already has made his feelings known, saying through a spokesman that he would veto any bill that emerged from Congress.

According to media reports, Senate Majority Leader Mitch McConnell moved to end debate on the bill, a version of which had already cleared the Republican-controlled House. But Republicans could only muster 53 votes for cloture, or an end to the debate, on two separate roll calls. Under parliamentary rules, 60 votes are needed for cloture.

The New York Times reported: “The move ensures that senators will continue to debate the bill — most likely for another week — before Republicans again try to bring the measure up for a final vote.”

The GOP had no doubt hoped for more Democrats. As Politico reported:

The legislation … on Monday lost a vote from one of its longtime backers, Sen. Jon Tester (D-Mont.) — now a member of party leadership as chief of the Democratic Senatorial Campaign Committee — but picked up a vote from Sen. Michael Bennet (D-Colo.), the former DSCC chairman who has not formally signed onto the pipeline bill.

Two other Democrats who have backed stripping Obama’s power to decide on a Keystone permit, Sens. Claire McCaskill and Mark Warner, missed the Monday vote.

“I’d like to see us decide Keystone and move on,” Sen. Heidi Heitkamp, one of the pro-Keystone Democrats who voted with the GOP to cut off debate, told reporters.

Keystone’s backers initially expected the pipeline votes would end this week. But Democratic anger over the majority leader’s move to close off the debate on their amendments last week has made the pipeline bill a power struggle, with Democrats pushing McConnell to continue the freewheeling energy debate on the floor that has delved into topics ranging from climate change to eminent domain.

 

Oil dips again amid signs that export ban might be relaxed

American crude and the international benchmark, Brent crude, met at the same price point Tuesday: about $46. West Texas Intermediate crude, the U.S. benchmark, briefly traded below Brent, the first time that’s happened in a year and a half.

Brent closed down 84 cents, to $46.59 a barrel. U.S. crude closed down 18 cents to $45.19. Read more in the Reuters story.

On average, Brent traded at $6.64 higher than WTI last year.

Bloomberg offers a reason why U.S. crude might be on the upswing: The news agency reports that the United States might be edging closer to relaxing the ban on oil exports.

The 40-year-old ban on most U.S. crude exports is set to be loosened after Petroleos Mexicanos, Mexico’s state-owned oil company, asked to import 100,000 barrels a day of light crude. Senator Ted Cruz, a Texas Republican, plans to propose an amendment to a bill approving the Keystone XL pipeline that would lift the export restrictions.

“WTI is relatively strong because it looks like exports will be rising,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone. “The Mexican request could be the first of many.”

Cruz must know something the rest of Washington doesn’t yet know, since President Obama already has promised to veto the Keystone XL bill if Congress passes it.

Vote count: Keystone XL backers one shy in Senate

There are dueling bills in Congress that would clear the way for construction of the Keystone XL oil pipeline in the United States.

The House already has passed a bill, sponsored by Republican Bill Cassidy, who’s a candidate for Senate in Louisiana.

The Senate has its own pro-KXL bill, sponsored by Democrat Mary Landrieu, the other candidate for Senate in Louisiana. They’ll square off in a runoff election Dec. 6.

Landrieu has 59 supporters for her bill, but she needs 60 to prevent it from being stalled by a filibuster threat.

A vote is scheduled for Tuesday.

Bloomberg has more on the horse-trading going on over the Senate bill.