U.S. Keystone XL Pipeline To Be Delayed At least Six Months

This article was last updated on April 16, 2022

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The targets of TransCanada Corp.’s controversial Keystone XL pipeline will definitely pushed back for at least six months in case the Obama administration doesn’t grants a final approves by the end of June, extending lower Canadian crude prices that threaten oil-sands growth.

TransCanada is expecting for a decision to be made regarding its project by at least mid-year, while assuming it will still be able to complete the pipeline by early 2015 though it will require them to hire more workers. However, a substantial amount of analysts are suspecting that the review will undeniably take longer than that. An analyst at Canaccord Genuity Corp. in New York, Phil Skolnick, stated during a phone interview on Monday, that “If Keystone XL doesn’t happen or gets delayed a full year plus, you’re talking about projects having to be put on the shelf.” He explained that Canadian heavy-crude prices are crashing down to their bottom lowest since Bloomberg began keeping track because oil-sands producers can’t transport their crude to Gulf Coast refineries.

Last week, the U.S. State Department released a draft environmental assessment, which will soon proceed in shape of a 45-day comment period for deciding whether or not to approve the $5.3 billion (U.S.) conduit allowing transport of 830,000 barrels per day of oil-sands crude to the Gulf Coast. The environmentalists in opposition to the pipeline assert that it will be speeding up the development of the oil sands, i.e. the confirmed world’s third-largest crude reserves, and hence will eventually lead to supplementary global warming.