• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 3 hours US after 4 more years of Trump?
  • 1 hour Something wicked this way comes
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 6 hours Why NG falling n crude up?
  • 3 hours Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 3 days Permian in for Prosperous and Bright Future
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 1 day The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 1 hour Biden NOW says he supports Fracking
  • 2 days Open letter from Politico about US-russian relations

Keystone Oil Pipeline Partly Shut To Investigate Possible Leak

A part of TransCanada’s Keystone oil pipeline, the crucial route carrying crude oil from Canada’s Alberta province to U.S. refineries, has been shut down for investigation of a possible leak near St. Louis in Missouri, a TransCanada spokesman told Reuters on Thursday.

TransCanada shut down the portion of the 590,000-bpd Keystone pipeline between Steele City, Nebraska and Patoka, Illinois, the company’s spokesman Terry Cunha told Reuters in an email.

TransCanada has sent crews to the site to investigate what’s happening and assess the situation, Cunha said, noting that a portion of the pipeline remained shut on Thursday.

The Missouri Department of Natural Resources plans to find the leak today and the release of oil has stopped, an official with the department told Reuters yesterday.

The shutdown of part of Keystone comes at a time in which Canadian heavy crude is becoming increasingly in demand as refiners look to replace the heavy crude grades from Venezuela after the U.S. slapped sweeping sanctions on the Latin American country’s oil industry and its state oil firm PDVSA.

Yet, the pipeline routes for Canadian oil to the U.S. are full to capacity and rising production in Canada last year led to further takeaway capacity constraints that forced Alberta to mandate an oil production cut of 325,000 bpd for three months starting January 2019. Last week, the Alberta province said it was easing the production cuts in February and March to 3.63 million bpd, which is a 75,000-bpd increase from the January limit of 3.56 million bpd, after seeing that the excessive oil storage has started to clear out.

According to data from Net Energy Exchange quoted by Reuters, the discount of Western Canadian Select (WCS)—the benchmark price of oil from Canada’s oil sands—to WTI widened on Thursday morning to US$10.15 a barrel from US$9.40 a barrel earlier.

In November 2017, TransCanada shut Keystone down for nearly two weeks after the pipeline leaked 5,000 barrels of crude oil in South Dakota.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News