It appears there is a possibility that President Obama could veto congressional legislation that pushes for Keystone XL pipeline construction, but ultimately approve the project anyway. This is because a key piece of the puzzle is a Nebraska Supreme Court decision. “If Nebraska were to bless a pipeline route, the State Department could finish its study. President Barack Obama has said he will have the final word on the project. An end to the Nebraska dispute could clear the way for a White House decision.” [Reuters] The bills currently working through congress effectively seek to circumvent the process described above and force the president’s hand on the issue. The White House made it clear Obama would veto any such bill.

Several US oil producers have been altering their oil price hedging strategies to better position themselves in a lower oil price environment, with Pioneer Natural Resources one of the latest to announce such changes. “The company is converting 85 percent of its 2015 derivatives contracts to fixed-price swaps that cover oil production at an average of $71.18 per barrel.” [Fuel Fix]

A new study uses models to identify which fossil fuel reserves should remain undeveloped in order to protect against the worst climate change impacts. “The authors show that the overwhelming majority of the huge coal reserves in China, Russia and the United States should remain unused along with over 260 thousand million barrels oil reserves in the Middle East, equivalent to all of the oil reserves held by Saudi Arabia. The Middle East should also leave over 60% of its gas reserves in the ground.” [Science Daily]