Canadian pipeline company TransCanada has filed an application with the U.S. Department of State to build the Keystone XL pipeline, which would transport crude oil from the oil sands region of Alberta, Canada, to refineries in the U.S. Gulf Coast and Midwest region. Keystone XL would have the capacity to transport 700,000 barrels a day (bpd) and can deliver crude to the oil market hub at Cushing, OK, and further to points in Texas. The project is expected to cost approximately $7.0 billion, of which an estimated $5.4 billion would be spent on the U.S. portion of the pipeline.

The Administration requested $63.4 billion in FY2010 supplemental appropriations: • $5.1 billion to replenish the U.S. Disaster Relief Fund administered by the Federal Emergency Management Agency (FEMA); • $33 billion for the Department of Defense (DOD) primarily for deploying 30,000 additional troops to Afghanistan; • $4.5 billion in war-related foreign aid to Afghanistan, Iraq, and Pakistan; • $2.8 billion for Haiti reconstruction and foreign aid in the wake of the earthquake; • $243 million for activities related to the Deepwater Horizon oil spill.

Petroleum prices rose sharply in the first half of 2008, at one time reaching more than $140 per barrel of crude oil. Since July, however, petroleum prices and import volumes have fallen at a historically rapid pace; in January 2009, prices of crude oil fell below $40 per barrel. At the same time the average monthly volume of imports of energy-related petroleum products fell slightly. The sharp rise in the cost of energy imports added an estimated $28 billion to the nation's trade deficit in 2007 and $120 billion in 2008.

Numerous laws and regulations have been adopted or issued to try to curb Iran's support for militant groups and slow its weapons of mass destruction programs. The sanctions are intended to reduce the revenue available to Iran's government and to generate domestic pressure within Iran to adopt policies more acceptable to the international community. The wide range of U.S. sanctions restrict U.S. trade with and investment in Iran, prohibit U.S. foreign aid to Iran, and require the United States to vote against international lending to Iran.

A variety of statutes and agency regulations govern leasing and permitting for energy projects, including oil and natural gas development as well as alternative energy projects, on federal lands. This report explains the legal framework for energy leasing and development on federal lands. The report reviews laws and regulations affecting leasing of federal lands for exploration and production of oil and natural gas, which have evolved under a complex leasing system over the last century.