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OIL AND GAS
Both sides of the border praise Keystone XL
by Daniel J. Graeber
Washington (UPI) Jan 27, 2017


TransCanada submits US application to build Keystone pipeline
Montreal (AFP) Jan 27, 2017 - Canadian pipeline builder TransCanada announced Thursday it had submitted an application to build the Keystone XL pipeline, a controversial project that has been given the green light by US President Donald Trump.

Trump on Tuesday gave a conditional go-ahead for the project, which was put on hold by former president Barack Obama over environmental concerns.

Calgary-based TransCanada said in a statement it had filed a "presidential permit application" with the US State Department for approval of the project.

The 1,180-mile (1,900-kilometer) pipeline would carry oil from Canadian tar sands to US Gulf Coast refineries, with some 870 miles winding through the United States.

Trump repeatedly asserted during the US presidential campaign that he would approve the pipeline.

"This privately funded infrastructure project will help meet America's growing energy needs as well as create tens of thousands of well-paying jobs," TransCanada CEO Russ Girling said in a statement.

The statement added that the project would add $3.4 billion to the US economy.

TransCanada must now wait while the US conducts a new study of the Keystone XL project. But between Trump's conditional go-ahead and his nomination of Rex Tillerson, the former CEO of ExxonMobil, as secretary of state, the project is likely to be approved.

Canada is the world's sixth-largest oil producer thanks to the Alberta tar sands, which produce some of the "dirtiest" crude in the world.

Unlike traditional crude which gushes from a well, tar sand oil must be dug up and essentially melted with steaming hot water before it can be refined. It results in huge lakes of polluted water and the strip-mining of millions of acres of once-pristine boreal forests.

Environmentalists say that tar sand oil contains a harmful and corrosive component -- bitumen -- which makes pipeline ruptures or leaks more likely and carries greater health and safety risks.

TransCanada says that buried pipelines are far safer for transporting oil than ships or trains, and that bringing another 830,000 barrels of oil a day from friendly, neighboring Canada would reduce US dependence on the Middle East and Venezuela by up to 40 percent.

Canadian Prime Minister Justin Trudeau, who supports building the pipeline, recently said he wants to gradually halt exploration of the oil sands and transition away from fossil fuel.

U.S. and Canadian trade groups said building the Keystone XL oil pipeline to southern U.S. ports was critical for the region's energy infrastructure.

Pipeline company TransCanada announced it re-submitted an application to build the cross-border Keystone XL oil pipeline after memoranda signed by U.S. President Donald Trump prioritized oil and gas networks as strategic interests.

The White House under President Barack Obama sidelined Keystone XL on environmental concerns as the heavier form of crude oil designated for the pipeline is viewed as more carbon-intensive and potentially more of a danger if spilled than other grades of oil.

Jack Gerard, the president of the American Petroleum Institute, praised Trump for advancing a modernized vision of North American infrastructure.

"We applaud President Trump's commitment to promoting our nation's energy infrastructure and creating jobs," he said in a statement.

Gerard estimates building Keystone XL, which would stretch from Alberta to the southern U.S. coast, would create "tens of thousands of jobs." A review by the State Department under Obama put the estimate in the thousands.

In announcing plans to re-submit its application to build the pipeline, TransCanada President and CEO Russ Girling said the company is moving in step with regional environmental interests because pipelines are less of a threat than rail, a transit method used now to make up for the lack of pipeline capacity in North America.

"Enhanced standards and the utilization of the most advanced technology will help ensure KXL will be built and operated to uphold our fundamental commitment to safety and the communities we serve," the company said.

Planned in part as an export artery, the Canadian Association of Petroleum Producers said Keystone XL breaks a landlock for a Canadian energy sector that depends almost exclusively on the U.S. market.

"We need to be able to access markets in all direction, east, south and west, for Canada to be the responsible global-supplier of choice," CAPP President and CEO Tim McMillan said.

Canada has pushed to diversify its export options away from the United States. Pipeline company Kinder Morgan secured recent approval to triple the capacity of its Trans Mountain oil network to western Canadian ports.

In early January, Alberta Premier Rachel Notely said breaking Alberta's landlock with Trans Mountain fixes "a problem that has dogged our province for decades."


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