keystone pipeline
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Keystone XL
A Pipeline for the Future
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The XL Pipeline• Owner: TransCanada• Purpose: Transport synthetic crude oil and diluted bitumen from Athabasca Oil Sands in NE Alberta,
Canada to multiple destinations– Refineries in Illinois– Cushing Oil Distribution Hub in Oklahoma– Refineries along the Gulf Coast of Texas
• Description:– The original Keystone Pipeline System has been operation since 2010. It is a 3,461-km (2,151-mi) pipeline
delivering crude oil from Canada to the U.S. Midwest as well as Cushing, Oklahoma.– The Gulf Coast Project began construction in November 2012.– The Keystone XL extension was proposed in 2008. The 1,897-km (1,179-mile) pipeline will extend from Hardisty,
Alberta to Steele City, Nebraska. Originally, the necessary permit was declined; TransCanada reapplied and is waiting on decision.
• Benefit: The completion of the Keystone XL Extension will introduce an additional 510,000 barrels per day. The construction of the project would generate thousands of jobs in the United States.
Information from Wikipedia & TransCanada
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Awaiting ApprovalThe Keystone XL Extension was delayed in November 2011 “to seek additional information regarding potential alternative routes around the Sand Hills in Nebraska to inform the determination regarding whether issuing a permit for the proposed Keystone XL pipeline is in the national interest” (Reuters)
TransCanada reapplied for a Presidential Permit and expects approval in the 1st quarter of 2013
Meanwhile, construction on the Gulf Coast Project, the southern section of the Keystone Pipeline, began in November (NewsOK)
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CONCERNS?
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Research gathered by the Congressional Research Service determined “that oil from the sands produces 14 to 20 percent more planet-warming gases than the average oil in U.S. refineries does.” Star Tribune
As highlighted in the Houston Press, those opposed to the pipeline are concerned about the consistency of the bitumen, natural gas condensate (synthetic crude) mix that will pass through the 1,700 mile pipeline at “pressures up to 1,300 pounds per square inch and temperatures as high as 150 degrees.” Houston Press
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The figures related “planet-warming gases” are disputed. Moreover, if the pipeline is rejected, the oil will most likely be sold to Asian markets, and those countries typically have far less environmental regulations than the United States. (Washington Times)
The Keystone XL Pipeline will be delivering Canadian crudes, which have been transported to the United States for years. (Human Events)
The pipeline has 4 years worth of environmental review and includes 57 special conditions translating to a pipeline with an “overwhelming degree of safety inherent in its engineering.” (Human Events)
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WHY THE KEYSTONE XL PIPELINE?
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Pipeline to Oil DominanceThe IEA announced the United States has the potential to be the top oil producer – surpassing Saudi Arabia – by 2020. Energy independence is expected to follow by 2035.
Increased drilling requires an improved infrastructure; “the increased production must be complemented with new pipeline infrastructure…to transport the crude oil” (Hispanic Business)
The pipeline is important to oil hubs currently “overrun” by booming production or generally lacking the pipeline system necessary to compete in today’s market. The Keystone XL Pipeline will complete a network of pipes vital to transporting oil where it is needed. (State Impact)
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Developing Regulation for GrowthThe United States currently has access to “a tremendous opportunity to become energy independent as long as we have a reasonable regulatory environment”(Hispanic Business).
The United Association of Plumbers and Pipe Fitters sees the projects as a way to secure safe energy and jobs throughout the United States.
“Not only is the Keystone designed to exceed the highest environment and engineering standards in the industry, the project will be built by workers who are trained to the highest skill and safety standards in the world.” Sacbee
In November of 2011, President Obama denied a permit to build the Keystone XL Pipeline because “the route through Nebraska needed more environmental review.” Star Tribune
This argument has been addressed and “the line has been rerouted so that it no longer runs through the Nebraska Sandhills aquifer” (Sacbee) supporters continue to vocalize that “this will be the safest pipeline ever built and its route has been revised to reflect environmental concerns.” (SFGate)
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XL: WHAT’S NEXT?
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Recent NewsNebraska’s environment agency completed its review of the proposed re-route of the Keystone XL. The agency found that the new route does avoid “sensitive regions that have been a source of concern” (NASDAQ)
Since the pipeline will cross the Canadian-US border, the U.S. State Department is conducting its own review, which is expected to be released in the near future.
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Keystone’s Future• To keep up-to-date on the progress of the Keystone Pipeline, like
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