President Barack Obama announced Friday that his administration would not approve construction of the Keystone XL pipeline—a decision that was quickly condemned by several industry groups.

The proposed pipeline would have transported crude oil from Canada to the Gulf of Mexico. The project became a policy lightning rod in recent years. Environmentalists viewed it as a step backward in efforts to fight climate change. Business groups promised it would bring much-needed jobs. The president ultimately sided with the former, telling reporters the pipeline had played "an overinflated role in our political discourse."

Several business groups disagreed. The American Petroleum Institute, not mincing words, called the rejection "an assault against American workers."

"It's ironic that the administration would strike a deal to allow Iranian crude onto the global market while refusing to give our closest ally, Canada, access to U.S. refineries," API CEO Jack Gerard said. "This decision will cost thousands of jobs and is an assault to American workers. It's politics at its worst."

Business Roundtable said it was "deeply disappointed" the projected was rejected.

"The president's decision is a major setback for workers and middle class American families who would have benefited from the jobs and economic growth that surely would have followed from the more than 800,000 barrels a day of new North American oil that the Keystone pipeline would have delivered to U.S. Gulf Coast refineries," said Nicholas Akins, chair of BRT's committee on energy and the environment.

Also disappointed was the National Association of Manufacturers. CEO Jay Timmons issued a joint statement with Terry O'Sullivan, president of the Laborers' International Union of North America, alleging Obama was putting politics ahead of jobs.

"After years of holding this project hostage by delaying a decision on the Keystone XL pipeline, the president turned his back on hardworking Americans, who overwhelmingly support the pipeline," the two said. "Manufacturers, all workers and all Americans deserve far better than to be treated so poorly."

MORE CEO DATELINE

• Cable association surveys 100,000 about their views of Internet
• Banks, credit unions score lobbying victory in highway bill
• Sugar, corn refiners associations have day in court
• Association: Like the Thanksgiving turkey, airports will be stuffed
• Cannabis association praises defeat of marijuana legalization law