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The Keystone XL Pipeline is dead, at least for now. On Jan. 18, President Obama announced that he would reject the construction of the pipeline largely because the deadline imposed by Congress didn't leave enough time for a thorough review. If you haven't heard of the Keystone XL Pipeline, here's what you need to know.

TUTORIAL: Commodities: Crude Oil

Tar Sands Oil

When we think of oil drilling, we think of the pictures of an oil well gushing oil out the top like a like a large sprinkler, but most of the world's oil, 2 trillion barrels, is in the form of oil sands, or tar sands. Tar sands are a combination of oil, sand, clay, water and a material called bitumen, a heavy, black and thick oil. After a refining process, tar sands oil becomes the liquid form that we all know.

The United States doesn't get a lot of oil from tar sands, but Canada is different. Forty percent of Canadian oil comes from tar sands and, currently, 20% of the United States' oil imports come from Canada.

The United States currently imports 21% of its oil from the Middle East, but importing oil from countries where relationships are strained is a national security concern. The United States would like to import more oil from Canada, but the infrastructure doesn't exist. (For more on this sector, read the Oil And Gas Industry Primer.)

The Pipeline

Presently, Canada exports 800,000 barrels of tar sands oil to the United States, but both sides would like to see that number rise. TransCanada (NYSE:TRP), a company that builds energy infrastructure, wants to build the Keystone XL pipeline. At more than 2,000 miles in length, the pipeline would transport oil from Alberta, Canada to refineries on the Gulf coast. The addition of the pipeline could double the amount of oil the United States imports from Canada.

The Positives

Along with reducing our independence on oil sourced from the Middle East, the TransCanada XL Pipeline would create a lot of jobs. TransCanada estimates that they would employ 13,000 Americans to construct the pipeline, along with 7,000 manufacturing jobs throughout the United States and 118,000 spin-off jobs, as local businesses along the pipeline route would see increased demand. (Looking for a new job this year? Read Economic Indicators For The Do-It-Yourself Investor.)