White House: 'No plans' to allow Keystone XL pipeline, despite saying all options on table for oil prices

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Americans react to record gas prices

The White House on Wednesday said it has "no plans" to restart construction of the Keystone XL pipeline, despite saying that all options were on the table in addressing the record-high gas prices as Russia’s war against Ukraine rages on.

Americans are experiencing the highest gas prices since the 2008 financial crisis, with the national gas price average reaching more than $4 per gallon – the highest average to date, according to AAA.

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President Biden on Tuesday announced a ban on all imports of Russian oil, gas and energy to the United States, targeting the "main artery" of Russia's economy amid Putin’s war on Ukraine.

During remarks from the White House Tuesday, though, Biden warned Americans that the ban would cost American families.

Press secretary Jen Psaki speaks during a press briefing at the White House, Wednesday, March 9, 2022. (AP Photo/Patrick Semansky)

"Putin's war is already hurting American families at the gas pump since Putin began his military buildup on Ukrainian borders," Biden warned. "And with this action, it's going to go up further. I'm going to do everything I can to minimize Putin's price hike here at home in coordination with our partners." 

On Wednesday, though, White House press secretary Jen Psaki said restarting construction of the Keystone XL pipeline was not one of the options on the table.

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"If we’re trying to bring about more supply that does not address any problem," Psaki said. "The pipeline is just a delivery mechanism – it’s not an oil field, so it does not provide more supply into the system."

When pressed further on whether restarting the pipeline is something the White House is considering, Psaki said: "There’s no plans for that, and it would not address any of the problems we’re having currently."

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Biden has been facing criticism from Republicans, urging him to lift his executive orders that canceled the Keystone XL pipeline from Canada and froze new oil and gas leases on federal lands.

He has also been criticized by both Democrats and Republicans for high gas prices, which have risen sharply under his administration even before Russia’s invasion. Many have publicly called for him to open up oil and gas drilling in the United States to lessen the country’s dependence on foreign oil.

Biden, on Tuesday, though, said it is "not true" that his administration is holding back domestic energy production, warning that gas prices will "go up further" from their current record levels, and reiterated his support for government spending on renewable energy sources and criticizing the oil and gas industry for not taking full advantage of drilling opportunities in the U.S.

Pipes for the Keystone XL pipeline stacked in a yard near Oyen, Alberta, Canada, on Jan. 26, 2021. (Jason Franson/Bloomberg via Getty Images)

Biden said it is "simply not true" that his policies "are holding back domestic energy production."

"Even amid the pandemic, companies in the United States pumped more oil during my first year in office than they did during my predecessor’s first year," he said.

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"We're approaching record levels of oil and gas production in the United States, and we’re on track to set a record of oil production next," he said, adding that in the U.S. "90% of onshore oil production takes place on land that isn’t owned by the federal government." 

"And the remaining 10% that occurs on federal land, the oil and gas industry has millions of acres leased – they have 9,000 permits to drill," he said. "Now, they could be drilling right now. Yesterday, last week, last year, they have 9,000 [permits] to drill onshore that are already approved.

"So let me be clear: they are not using them for production. That’s their decision. These are the facts. We should be honest about the facts." 

A tanker truck enters the Chevron Products Co. El Segundo Refinery on Jan. 26, 2022, in El Segundo, California. (Patrick T. Fallon/AFP via Getty Images)

Psaki, on Wednesday, maintained that oil and gas companies have the "permits" needed, and said she didn’t think "they needed an embroidered invitation to drill."

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"What is happening here is that we are seeing – these are private sector companies, we recognize that many of them are making record profits. We see that that is all publicly available data," Psaki said. "They have pressure to return cash to investors and their shareholders."

She added: "What we're saying right now is there is a war. We're asking them to go use the approved permits, use the unused space and go get more supply out of the ground in our own country."

Meanwhile, the White House is blaming Russian President Vladimir Putin for record-high gas prices in the United States, coining the surge as the "#PutinPriceHike."

White House communications director Kate Bedingfield on Wednesday tweeted that, for months, Putin "has been saber-rattling, and for months, gas prices have been going up – up 75 cents since he began his military build-up" along the Ukrainian border.

"This is the #PutinPriceHike in action, and @POTUS is going to use every tool at his disposal to shield Americans from pain at the pump," she wrote.

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When asked about the new hashtag, Psaki said that "events in the world, including the invasion by Russia of a foreign country, does prompt instability and volatility in the global oil markets."

"There are all sorts of different issues that can impact that, that’s what we’re seeing now," Psaki said, noting economists and analysts have "conveyed and said publicly that Russia’s invasion, Russia’s build-up of troops, President Putin’s to do that very early this year, led to a lot of instability and volatility in the oil markets."

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"So, therefore, if President Putin’s build-up of military troops is leading to volatility and an increase in oil and prices, hence, you have a Putin pump, gas price pump rise," Psaki said.

Meanwhile, the president was asked on Tuesday if he had a message for the American people on gas prices.

"They’re going to go up," he said.

When asked what is he going to do about it, Biden replied: "Can’t do much right now. Russia is responsible."