One day - One News, One day - One Project

Email This Page

TransCanada US Keystone XL Pipeline ignores low barrel price

Nebraska Court sets green light to Keystone XL project

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolOn January 9th 2015, the Nebraska High Court gave the green light to TransCanada for the acquisition of lands to build and operate its giant Keystone XL Pipeline project to connect the Alberta tar sands to the US Gulf Coast downstream industry.

 In removing the last barriers to the project, the Nebraska High Court forwarded the final decision on the Keystone XL project to the US President Barak Obama himself and his veto right.

 After not less than six years of intensive political and legal battle between supporters and opponents to the project, a final investment decision could be made this year.

TransCanada_Keystone_XL_Pipeline_Project_MapWith its tar sand production locked in Alberta and the challenges to build export pipelines to west or to east, TransCanada proposed the Keystone XL project to connect the Canadian oil transportation system to US existing infrastructures in order to supply the US refineries and the petrochemical industry concentrated in Texas.

In that perspective TransCanada designed the Keystone XL pipeline to link the Hardisty oil terminal in the Canadian Province of Alberta to the US Steele City in Nebraska.

With a 36-inch diameter, the Keystone XL pipeline should run along 1,897 kilometers distance crossing the Canadian Province of Saskatchewan and the US States of Montana, South Dakota and Nebraska.

The Keystone XL Pipeline should a capacity of 830,000 barrels per day.

In connecting with the US pipeline system, the TransCanada Keystone XL pipeline will be able to deliver crude oil to Montana, North Dakota, Oklahoma and Texas.

While importing Canadian crude oil to US, the Keystone XL pipeline will also transport the shale oil produced in the Bakken Basin saddling across Montana and North Dakota States.

Keystone XL Pipeline waiting for Presidential Permit

As any cross-boarder pipeline, the Keystone XL Pipeline project is submitted to the Presidential Permit.

TransCanada filled in the application to the Presidential Permit in May 2012.

At that level the decision is not only technical or environmental, but political and strategic.

From the studies provided by the US Energy Information Administration (EIA), the US should still be dependent on crude oil import on the next decades for estimated 30% of its consumption despite doubling the local production on the last 10 years and a stabilization of the demand.

TransCanada_Keystone_XL_Pipeline_ProjectThis crude oil import comes mainly from Middle-East and Venezuela for which the Keystone XL pipeline project offers an alternative to secure the US supply on the long-term.

In a short-term, this Keystone XL Pipeline project would diversify the US sources of supply and contribute to maintain low barrel prices for the local industry.

Originally estimated to cost $5.4 billion capital expenditure out of which $2.5 billion have already been engaged, TransCanada is currently revising Keystone XL Pipeline budget upward that could exceed $10 billion. 

Assuming President Obama to make a decisions end of 2015, TransCanada should be able to run the Keystone XL Pipeline project into commercial operations by 2018.

For more information about oil and gas and petrochemical projects go to Project Smart Explorer

2B1st_Project_Smart_Explorer_Sales_Pursuit_Tool

Leave a Reply

cash loans . But it is worth noting that these tests were carried out on the blood cells. Therefore, it's too early to say about scientific evidence of Viagra In Canada influence on blood clots.