Canada's oil is going to be extracted and exported, whether the Keystone XL pipeline is completed or not. The question is, will the United States benefit from the economic activity and new jobs that will come from approval of the pipeline, or will that oil go to some other country. China, for example. Or, say, India.

From The Ottawa Citizen, "Envoy says India wants more Canadian oil and gas as uranium deal inked":
 

OTTAWA - With the ink barely dry on his country's long sought nuclear co-operation agreement, India's top diplomat says his county is setting its sights on increasing the flow of oil and gas imports from Canada.

Indian High Commissioner Nirmal Verma also said that his country would like to see the completion of a pipeline to Canada's east coast that would carry Alberta crude to Atlantic Ocean ports.

Verma told The Canadian Press that India would consider investing in the proposed Energy East Pipeline project, if clears regulatory hurdles and moves ahead.

"The issues are getting the energy out of where it is located in central Canada to tidal waters," Verma said in an interview this week at his Ottawa office.

Meanwhile, and this comes as no surprise, really, the possibility of Congress approving the Keystone pipeline as part of a budget deal appears to be off the table. From National Journal:

A measure the House leadership is considering to head off a debt-limit crisis does not include any number of energy riders proposed earlier, including approval of the Keystone XL pipeline and provisions to expand offshore drilling, E&E reports (paywall).

"It's been overcome by other events.... I think the focus has narrowed," said Rep. Chris Stewart, R-Utah, chairman of the House Science, Space and Technology Subcommittee on Environment. "There are many of us who work in the energy areas of Congress who would love to see some of those provisions move forward. But I think ... it was just outside the scope of other people's focus."

Of course, President Obama could ensure that the pipeline never enter the budget or debt ceiling debates by approving the project himself. One-hundred-sixty-eight CEOs urged him to OK the permit in a letter released Thursday by Business Roundtable, the National Association of Manufacturers and the U.S. Chamber of Commerce's energy institute.

Unfortunately, the federal government shutdown may have thrown a wrench into the works. From Reuters, "U.S. government shutdown could delay Keystone XL pipeline decision":

WASHINGTON (Reuters) - The U.S. government shutdown is making it harder for the State Department to review the Keystone XL pipeline permit process, a State Department official said on Thursday, which could delay President Barack Obama's decision on the project.

The State Department - which is in charge of the pipeline permit process because Keystone XL would cross the national border - had been expected to issue a final environmental review in mid-October for TransCanada Corp's pipeline that would help link Canada's oil sands to refineries in Texas.

Delays in that review could push back Obama's final decision on the pipeline, which had not been expected until some time in early 2014.

 Let's end with some good news. Via Reuters, "U.S. soon to overtake Russia as top oil producer":

The United States will become the world's largest oil producer next year - overtaking Russia - thanks to its shale oil boom which has transformed the global energy landscape, the West's energy watchdog said on Friday.

The prediction comes only days after estimates by the U.S. government showed the United States, the world's largest oil consumer, has ceded its ranking as top global oil importer to China, thanks to the shale revolution cutting import needs.

 The United States' place in the driver's seat of growth is also a throwback to decades past," the International Energy Agency said in its monthly report.