The White House has rejected the Keystone XL pipeline, President Barack Obama announced Friday.

Obama, flanked by Secretary of State John Kerry and Vice President Joe Biden, delivered a statement on the pipeline decision from the White House, during which he said the proposed pipeline project had "occupied what I frankly consider an over-inflated role in our political discourse."

TransCanada — the company behind the proposal — shares traded about 5 percent down on the day as of 11 a.m. ET. Oil futures, however, moved little on the news, as traders said the pipeline has become less of a hot-button issue with the increase of U.S. production.

"This morning Secretary Kerry informed me that after extensive public outreach and consultation with other cabinet agencies, the State Department has decided that the Keystone XL Pipeline would not serve the national interests of the United States. I agree with that decision," Obama said.

Listing the reasons why the State Department recommended rejecting the pipeline, Obama highlighted his administration's analysis that the project "would not make a meaningful, long-term contribution to our economy."

Additionally, Obama said the State Department believed the pipeline would not lower gas prices for american consumers (and he pointed to the recent decrease in the cost of gas to consumers). Obama also said that "shipping dirtier crude oil into our country would not increase America's energy security," seeking to rebut one of the frequent arguments for the Keystone XL project.

Finally, Obama emphasized his administration's achievements on the environmental front, and said that approving the pipeline project would not remain consistent to those principles.

"America is now a global leader when it comes to taking serious action to fight climate change, and, frankly, approving this project would have undercut that global leadership," Obama said.