Keystone XL: White House Backs Pipeline That Will Ship U.S. Oil Overseas

WASHINGTON -- The White House is throwing its support behind a decision by TransCanada to build a portion of the Keystone XL pipeline, even though the project will result in more oil going overseas and potentially higher gas prices.

TransCanada announced Monday that it plans to begin building the southern part of the pipeline, which would ship crude oil from Cushing, Okla., to the Gulf of Mexico.

White House press secretary Jay Carney said President Barack Obama "welcomes" the news that the Canadian pipeline company is moving ahead with its plans, despite the fact that the administration halted work on the cross-border portion of Keystone through 2013 -- a move that sparked outcry among congressional Republicans -- until TransCanada works out a new route through Nebraska that avoids ecologically sensitive areas.

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