The Obama administration is unfazed by Canadian warnings that delays in the Keystone XL pipeline review will add urgency to Ottawa’s effort to ship crude oil to China, says U.S. Ambassador David Jacobson.

In an interview Thursday, Jacobson insisted that President Barack Obama’s rejection of TransCanada Corp’s pipeline permit should not be seen as a judgment on the merits of the project, or the desirability of importing more oil sands bitumen.

Prime Minister Stephen Harper expressed his “profound disappointment” at the decision Wednesday to reject the current application, while Natural Resources Minister Joe Oliver said the further delay underscores the need for Canada to diversify its markets for crude exports and develop routes to rapidly expanding Asia.

In condemning the ruling, Republican house Leader John Boehner accused President Obama of “shipping American energy security to China.”

But Mr. Jacobson made it clear that this week’s decision was not the administration’s final word on the Keystone XL project.