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On environment, Obama likely to keep walking middle line

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As early as Dec. 17, the EPA is also expected to issue a report examining the impact on water sources of hydraulic fracturing, or “fracking,” a controversial oil and gas production method. Industry, which asserts that water has never been contaminated by fracking, will be watching for hints of possible federal regulations in the EPA findings.

“Look at what natural gas is doing for greenhouse gas emissions,” said Jack Gerard, chief executive of the American Petroleum Institute, the chief oil and gas lobbyist. Gerard pointed out that the fall in carbon emissions in the U.S. has been largely driven by more power plants burning gas rather than coal. “You can’t be for natural gas and against hydraulic fracturing.”

Gerard also considers the administration’s long-awaited decision on the Keystone XL pipeline from Canada a possible bellwether on energy policy. The oil industry has pushed hard for approval of the pipeline, which would bring oil from the tar sands of Alberta to refineries on the Gulf Coast, saying it would create jobs and reduce dependence on oil from overseas.

The administration is expected to make its decision in the first quarter of 2013.

Environmentalists rail against the pipeline, contending it would destroy vast parts of Canada, boost carbon emissions and threaten the Midwest’s primary aquifer.

“It’s the first clearest test of how committed the president is to turning away from dirty fuels,” said Michael Brune, executive director of the Sierra Club. “You can’t say you’re committed to fighting climate change and turn around to approve a pipeline that would pump the dirtiest oil in the world.”

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