Biden cancels Keystone pipeline in bid to fight drug cost increase

Vice President Joe Biden has cancelled plans to begin construction on the $7.8 billion Dakota Access pipeline after the company said it would charge $1.25 per gallon for its fuel, citing cost overruns and a potential increase in the cost of natural gas from the United States.

The move comes as Biden has been at odds with the White House and industry in recent weeks, with the vice president refusing to support the Keystone XL pipeline as it moves through the Senate despite strong support for the project from the president and his top advisors.

Biden is facing pressure to reconsider the project in light of the costs associated with the pipeline, which would carry 1.7 million barrels of oil per day from the Canadian oil sands to refineries on the Gulf Coast.

The pipeline would carry the same amount of crude oil from the Bakken shale region in North Dakota to the Gulf coast, but would be built at a much lower cost by shipping it by rail.

Brent crude oil prices hit a three-month high Thursday and were trading around $90 a barrel on Thursday.

The price of crude futures has been on the rise recently as well, hitting $115.30 on Thursday before falling to a low of $73.60 a barrel.

On Wednesday, Trump said he would reject the pipeline unless it is “right for the American people.”

The announcement by Biden comes as President Donald Trump continues to press his case against the pipeline as well as the Keystone Pipeline, which has been the subject of a major court case in Texas and an Environmental Protection Agency review that found that the project is environmentally damaging.

Trump, a staunch backer of the pipeline in the early stages of the Keystone fight, on Wednesday ordered the EPA to stop reviewing the pipeline’s environmental impact and said he was willing to impose additional economic sanctions if the project isn’t built.

Bids for the Dakota Access Pipeline were filed in March and approved by a federal court in Texas in April.

A judge issued a temporary injunction in May blocking construction of the project.