TransCanada Pipeline Faces Extended Environmental Review

 

The proposed Keystone XL pipeline from TransCanada to carry Canadian oil sands oil to Gulf Coast refineries will be further delayed as the U.S. government conducts extended environmental review of the drastic undertaking. 

The action by the U.S. seeking public comment in mid-April on the pipeline is in response from environmental groups calling on the Obama administration to further investigate before making a decision.  The decision should be made by the end of the year, with opposition from environmentalists increasing the present fear of another North American oil disaster and contamination of key drinking water sources. 

New studies by U.S. environmental organizations said there is a warning for higher risk of corrosion-related spills due to the higher number of abrasives, temperature, and acidity in tar sands oil.  TransCanada has rebutted this claim.

On the same token, Keystone XL boasts the opportunity for billions in economic benefits that could help rejuvenate the lagging climate in the U.S. creating at least 20,000 jobs, as well as providing a secure source of energy independent of foreign reliance. 

President and chief executive officer of TransCanada cited the unrest in Libya and the Middle East as a clear indication of why the approval would be so beneficial to Canada, and to the U.S. for the uncertain future of many oil-producing countries. 

With Canadian approval already in place, all that’s holding back Keystone is the approval by the U.S. State Department.  In fact, the first phase of the project, delivering the crude to a storage hub to Oklahoma is already in operation. The expansion would create a capacity of 500,000 barrels per day and take the line along the U.S. Gulf Coast.   

Despite setbacks of the company hoping the decision would be made by the end of 2010, the company stays positive and says that they believe the pipeline will still be fully operational by year 2013.