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Keystone Delays Fuel Push for Canada East Oil Pipeline

Delays by the U.S. in reviewing Keystone XL are helping build momentum for an oil pipeline to Canada ’s East Coast. TransCanada Corp. (TRP) , the company proposing the $5.4 billion conduit to connect Alberta ’s oil sands with U.S. Gulf Coast refiners, may have an easier path to approval with its alternative to the nation’s Atlantic Coast. The C$12 billion ($11 billion) Energy East would be North America ’s largest oil line, with capacity to ship 1.1 million barrels a day. “We view the Energy East project a step in the right direction,” Thomas Mulcair , leader of the federal New Democratic Party , said at the Bloomberg Canada Economic Summit yesterday in Toronto. The opposition leader prefers the project over Keystone because it would support Canadian “value-added” jobs by supplying refineries in Eastern Canada. While shipping oil-sands crude across the country to the port of Saint John, […]

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Stopping Keystone Ensures More Railroad Tank-Car Spills

The Keystone XL Pipeline got another nail in its coffin Monday, in the form of a Senate energy vote that excluded the pipeline issue. But Keystone was already near death thanks to the Obama’s administration’s recent decision to ignore the evidence of a definitive government study—and instead keep listening to environmentalists’ dubious claims. The upshot will be more political fires in Washington caused by train derailments in the absence of a pipeline to transport oil more safely. After the derailment in downtown Lynchburg, Va., on April 30, approximately 30,000 gallons of Bakken crude oil burned or spilled into the James River. On May 9, a derailment north of Denver spilled another 6,500 gallons of oil, which was contained in a ditch before reaching the South Platte River. Fortunately, unlike in the 2013 derailment in Quebec where a 1.3 million-gallon spill killed 47 people and incinerated 30 buildings, no one […]

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Senate Squabble on Energy Policy Looks Likely to Stop Pipeline Vote

A tug of war in the Senate over energy policy and procedure looked likely to derail a vote on the Keystone XL pipeline that had been sought by Republicans and some Democrats from energy states. Senate Majority Leader Harry Reid (D., Nev.) had indicated last week that he would bring to the floor a measure approving construction of the controversial pipeline as part of a deal tied to passing a bipartisan energy-efficiency bill. But prospects for a Keystone vote receded Wednesday after Mr. Reid said he wouldn’t allow any further amendments to the energy bill, angering Republicans, who are now expected to block the energy bill from advancing in the chamber. The retreat from holding a vote on a stand-alone Keystone bill, which would bypass an executive order from the Obama administration and force approval of the pipeline, isn’t a clear-cut victory for either party. Sen. Mary Landrieu , […]

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Keystone XL bill backed by Big Oil, group says

U.S. senators who drafted legislation in support of the Keystone XL oil pipeline received $21 million from the oil industry, an advocacy group says. U.S. Sens. John Hoeven , R-N.D., and Mary Landrieu , D-La., chairwoman of the Senate Energy Committee, introduced legislation that would immediately authorize pipeline company TransCanada’s application to build Keystone XL. Oil Change International, an advocacy group opposed to Keystone XL, said Hoeven and Landrieu received campaign support from the oil industry. It said Thursday its review of campaign contributions finds the nine Democratic senators who joined the entire rank of Senate Republicans in co-sponsoring the bill received an average $375,000 each in "dirty energy money." TransCanada submitted an application to the U.S. federal government to build the pipeline across the U.S.-Canadian border. A decision on the application is pending because of legal issues over the pipeline’s route through Nebraska. […]

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Wooing of Senators to Force Keystone Seen Falling Short

Keystone XL supporters are falling short in their efforts to round up the Democratic votes in the Senate to bypass the White House and approve the Canada-to-U.S. oil pipeline. A bipartisan bill was introduced yesterday that would circumvent President Barack Obama by issuing a permit allowing construction. The move came after his administration delayed a decision on the $5.4 billion project, possibly into next year, citing a legal challenge to the route it would take through Nebraska. Senate Majority Leader Harry Reid , a Nevada Democrat who opposes the pipeline, told reporters yesterday that there is a “75 to 80 percent chance” that a vote on a standalone Keystone bill will be allowed. That might seem like good news for pipeline supporters, but Democratic leaders are convinced they could defeat a binding measure to force a permit for the pipeline, said a Democratic leadership aide who spoke on condition […]

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TransCanada Sees Job Cuts With Keystone Build Delayed

TransCanada Corp. (TRP) doesn’t expect to start building its proposed $5.4 billion Keystone XL pipeline this year, resulting in hundreds of job losses as construction contracts are wound down. The company has pushed the timetable to start building the northern leg of the project, intended to transport crude from Alberta ’s oil sands to Gulf Coast refiners, to 2015 after the Obama administration delayed a decision because of a legal challenge in Nebraska . TransCanada is still targeting startup of the line in 2016, Chief Executive Officer Russ Girling said today. “There will be several hundred that will be impacted by this decision, both employees and contractors,” Girling told reporters at the company’s annual meeting in Calgary. “At this point in time, there’s a very low probability that we would have a decision in time to meet this year’s summer construction period.” The State Department, which is leading an […]

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Senate Likely to Vote Soon on Keystone Approval, Democrats Say

Senate Majority Leader Harry Reid said Thursday he was prepared to bring a measure approving the Keystone XL pipeline to the Senate floor, despite the Obama administration’s reluctance to decide its fate during an election year. Supporters were still searching for the handful of votes needed for such a bill to pass the Senate, but they were energized by the prospect of a floor vote. The Republican-controlled House strongly supports the pipeline. The administration two weeks ago said it was extending a State Department review of the proposed TransCanada Corp. pipeline—first proposed in 2008—because of litigation related to the project in Nebraska. Mr. Reid’s comments reflect the Democrats’ calculus that a Keystone vote could provide a boost to vulnerable Democrats running for re-election in conservative-leaning states who must hold their seats for the party to retain control of the chamber in November’s midterm elections. But it also would expose […]

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Pipeline Supporters Seek Quick Senate Vote

Supporters of the proposed Keystone XL pipeline are seeking a swift Senate vote on legislation to approve construction of the project that environmentalists oppose strongly and the Obama administration has delayed indefinitely. Pipeline advocates in the Senate, who include several Democrats on the November election as well as Republicans, hold a clear majority. They also may command more than the 60 votes needed to overcome blocking tactics by opponents, but they appear to be short of the two-thirds majority that would be needed in the 100-member chamber to override any veto by President Barack Obama. "I will press hard for a vote in the coming weeks to build this pipeline," Sen. Mary Landrieu, a Democrat and the chair of the Senate Energy Committee, said this week in a statement as lawmakers returned from a two-week break. Landrieu and Sen. Mark Begich, […]

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Obama Keystone Choice Pits Donors Against At-Risk Senate

President Barack Obama ’s advisers are lining up against the proposed Keystone XL oil pipeline. Top Democratic donors oppose the project. And Obama himself dismisses claims that it will create many jobs. Yet there’s still one big obstacle to the president saying no to Keystone: election-year politics. If Obama rejects the pipeline, it might sink Democratic candidates in states with big energy industries, such as Louisiana and Alaska . That could cost Democrats control of the Senate — a risk that’s likely to weigh heavily on any decision the president makes, to approve the pipeline, reject it or wait until […]

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