Moody's, a prominent ratings agency, predicted President Barack Obama would "reverse course" and approve the Keystone XL pipeline from Canada to Texas during his second term.
“We believe the White House will reverse course and approve the Keystone XL pipeline, which would ship crude from Canada’s western oil sands to the Gulf Coast,” Moody's wrote, according to The Hill.
Moody's also predicted the approval would not be quick and a "prolonged permitting process risks missing the very oil price boom that inspired Keystone XL in the first place."
The agency acknowledged that "even if Keystone XL went into operation in 2015 or 2016, Gulf Coast refining and marketing companies would benefit from wider light/heavy crude price differentials.”
Moody's also noted in its forecast that Obama's second term would also hurt parts of the energy industry, as they would seek to more aggressively regulate hydraulic fracking and offshore oil exploration.
“Energy regulation may tighten in general as well, with the US Environmental Protection Agency (EPA) expanding its regulatory reach. Hydraulic fracturing will likely come under more scrutiny, and federal oversight of deepwater production will remain strict," Moody's wrote.
Environmentalists plan to oppose the Keystone pipeline in a demonstration in front of the White House on November 18.