Could the Keystone XL pipeline be the magic ingredient to lowering gas prices in the United States?
A group of Republican state attorneys general are calling on President Joe Biden to reinstate the permit for the canceled Keystone XL pipeline, saying they foreshadowed these higher gas prices and dependence on foreign oil from the start.
In a letter to the White House, the attorneys general criticized the president's decision to revoke the Trump-era permit on his first day in office, calling it "misguided" and "unlawful."
The Keystone pipeline would have produced an estimated 830,000 barrels of crude per day, transporting oil from Canada to midwestern U.S. and Gulf Coast refineries.
"We warned you then if your decision was not reversed, Americans would 'suffer serious detrimental consequences,' consumers would pay higher prices, and our allies would become further dependent on Russian and Middle Eastern oil," the letter said. "We hate to say we told you so."
The American public feels the effects of Biden's decision every day, the AGs said, through record-high gas prices, increased energy costs and economy-wide inflation. The pipeline would have brought jobs, tax revenue, and sustained economic opportunities to many underserved communities, the letter added.
It was previously reported that the project would have employed thousands of workers and indirectly created thousands of more jobs. The project was anticipated to generate over $2 billion in earnings, providing tens of millions of dollars to state and local governments along its route.
Biden's decision also left European countries "literally funding" the invasion of Ukraine, the letter added.
"European countries are unable to impose oil and gas sanctions on Russia without risking an economic recession. Instead, European countries are spending $1 billion per day on Russian oil and gas," the AGs said.
The letter is signed by attorneys general from 16 states, including Montana, Alabama, Alaska, Arizona, Arkansas, Florida, Indiana, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Texas, Utah, West Virginia and Wyoming.
The president's top economic advisor said the White House has no plans to reignite the Keystone pipeline.
"Any action on Keystone wouldn't actually increase supply, and it would transmit oil years in the future," National Economic Council Director Brian Deese told CNBC.
Deese said the administration is focused on short-term priorities to address the supply disruption and lower fuel prices as soon as possible.
"What we're focused on right now is what we can do right now," he added, "not long-term questions that we can have debates about."
Gas prices spiked last month, setting a record-high average of $4.31 a gallon on March 11. The nation average pump price was $4.10 a gallon on April 19, according to AAA.
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