Hugh Pickens DOT Com writes "Reuters reports that pressure on President Obama to approve the Keystone XL pipeline increased on Friday after a State Department report played down the impact it would have on climate change, irking environmentalists and delighting proponents of the project. The long-awaited environmental impact statement concludes that the Keystone XL pipeline would not substantially worsen carbon pollution, leaving an opening for Obama to approve the politically divisive project as it appears to indicate that the project could pass the criteria Obama set forth in a speech last summer when he said he would approve the 1,700-mile pipeline if it would not 'significantly exacerbate' the problem of greenhouse gas emissions. The oil industry applauded the review. 'After five years and five environmental reviews, time and time again the Department of State analysis has shown that the pipeline is safe for the environment,' says Cindy Schild, the senior manager of refining and oil sands programs at the American Petroleum Institute, which lobbies for the oil industry. Environmentalists say they are dismayed at some of the report's conclusions and disputed its objectivity, and add that the report also offers Obama reasons to reject the pipeline. The report concludes that the process used for producing the oil — by extracting what are called tar sands or oil sands from the Alberta forest — creates about 17 percent more greenhouse gas emissions than traditional oil (PDF). But the report concludes that this heavily polluting oil will still be brought to market. Energy companies are already moving the oil out of Canada by rail. 'At the end of the day, there's a consensus among most energy experts that the oil will get shipped to market no matter what,' says Robert McNally. 'It's less important than I think it was perceived to be a year ago, both politically and on oil markets.'"