The EPA has added fuel to the fire in the debate over Keystone XL. The EPA filed new comments with the State Department that could give the White House additional cover to deny approval of the controversial project.

The EPA said that the recent drop in oil prices could mean that construction of the pipeline could promote increased development of the Canadian oil sands and therefore increased emissions of greenhouse gasses.

Previous economic analysis of the Keystone XL project had found that when oil prices were sustained at $65 – $75 per barrel, the oil sands would be brought to market with or without the pipeline, and therefore the pipeline itself would not make a significant greenhouse gas emission contribution.

But the EPA notes in their new comments that with oil prices now around $50 per barrel, “construction of the pipeline is projected to change the economics of oil sands development and result in increased oil sands production, and the accompanying greenhouse gas emissions.” – EPA

It has been widely reported that this new economic calculus could give President Obama the excuse he needs to shut the project down.