Although the entire Keystone XL pipeline is not approved, Trans Canada is planning to start work on extending a pipeline from Cushing Oklahoma to a Texas port while it awaits approval for the part from Canada to Nebraska.
The segment to Texas will cost about 2.3 billion. There is a glut of oil at Cushing Oklahoma and the new segment would allow the oil to flow down to Texas. Although rejecting the Keystone application Obama did say he supported an expanded shipping capacity between Cushing and the Gulf.
Jay Carney said that Obama welcomes Trans-Canada's plans. He also noted that Trans-Canada's new application for an altered route through Nebraska would be thoroughly assessed. Carney noted:"We support the company's interest in proceeding with this project, which will help address the bottleneck of oil in Cushing that has resulted in large part from increased domestic oil production, currently at an eight-year high,". "Moving oil from the Midwest to the world-class, state-of-the-art refineries on the Gulf Coast will modernize our infrastructure, create jobs, and encourage American energy production." For more see this article.