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NEW YORK (CNNMoney) -- The Obama administration is expected to announce its opposition to the controversial Keystone oil sands pipeline project as early as Wednesday, according to a Democratic source briefed on the matter.

The 1700-mile long pipeline expansion, intended to carry crude oil from Canada's oil sands to the U.S. Gulf Coast, has become a lightening rod in American politics.

Supporters, including the builder TransCanada, the oil industry, some unions and many in the Republican party, say it's a vital job creator that will lessen the country's dependence on oil imported from volatile regions.

Opponents fear the pipeline may leak, and that it will lock the United States into a particularly dirty form of crude that might ultimately end up being exported anyway.

The two sides have been squaring off since this summer, with the project highlighting how both sides view larger issues of jobs, the economy, the environment and energy.

Keystone's opponents hailed Wednesday's expected decision as a victory.

"Assuming that what we're hearing is true, this isn't just the right call, it's the brave call," Bill McKibben, a leader of the opposition and founder of the environmental group 350.org, said in a statement. "This is a victory for Americans who testified in record numbers, and who demanded that science get the hearing usually reserved for big money."

Pipeline supporters were unhappy with the expected decision.

"This is not good for our country," House Speaker John Boehner said Wednesday, noting that his office has not yet been officially informed of the White House decision. "The president wants to put this off until it's convenient for him to make a decision. That means after the next election. The fact is the American people are asking the question right now, "Where are the jobs?"

And even if the White House denies the pipeline, it's not clear if the project would be totally dead.

Why deny Keystone now? The reason a decision is being made today is that under the payroll tax deal reached last month, House Republicans gave President Obama 60 days to either approve or deny the pipeline.

The administration has repeatedly said that's not enough time to conduct the necessary reviews.

In November the administration delayed a decision on the pipeline until 2013 after vocal protests from environmentalists and opposition from many people in the State of Nebraska, who feared the pipeline's proposed route over a sensitive aquifer.

But the administration could deny the permit for now but leave the door open to approving it in 2013, its original plan. It could also invite TransCanda to resubmit its application. Or it could close the door outright on the project. A statement from the administration is expected later Wednesday.

Environmentalists have hated the pipeline since day one.

They fear it could leak, and say the crude transported to the Gulf Coast may ultimately be exported to Europe or Asia. They also doubt it will really create the jobs supporters promise, saying it could even cost jobs if it helps derail the green economy.

But mostly they are concerned over the environmental effects of developing the oil sands themselves.

Much of the oil sands are mined like coal in giant open pits that result in water pollution and deforestation. Companies that operate in the oil sands, including ExxonMobil, BP and Royal Dutch Shell, have gotten better at mitigating these impacts, but problems remain.

And because oil sands are just that -- sand mixed with oil -- the oil needs to be separated out, requiring massive amounts of energy and leaving an overall greenhouse gas footprint 5% to 30% greater than conventional oil.

Pipeline supporters say crude from the oil sands isn't any dirtier the heavy oil imports it would replace from Mexico or Venezuela.

They say the $7 billion pipeline will create over 10,000 construction jobs in each of the two years it takes to build, generate $5 billion in property tax revenue and pump a total of $20 billion into the U.S. economy over the project's 100 year lifetime.

Crucially, they say that while the 700,000 barrels of oil a day the pipeline would carry is still imported oil, at least it's from politically stable Canada.

CNN's Jessica Yellin contributed to this report

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