• 3 minutes This Battery Uses Up CO2 to Create Energy
  • 5 minutes Shale Oil Fiasco
  • 9 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 12 minutes Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 5 hours Governments that wasted massive windfalls
  • 19 mins Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 2 hours Let’s take a Historical walk around the Rig
  • 16 hours Trump has changed into a World Leader
  • 5 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 4 hours Here is Why People Lose Money Trading Natural Gas
  • 1 day Beijing Must Face Reality That Taiwan is Independent
  • 2 days Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 2 hours US Shale: Technology
  • 7 hours 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 13 hours Trump capitulated
  • 2 days Yesterday POLEXIT started (Poles do not want to leave EU, but Poland made the decisive step towards becoming dictatorship, in breach of accession treaty)

Breaking News:

Brazil Decides Against Joining OPEC

TransCanada Allowed To Increase Pressure Of Keystone

Pipeline pieces

The U.S. Pipeline and Hazardous Materials Safety Administration has lifted a pressure restriction on the Keystone pipeline introduced in November after a leak, a spokesman for the authority told Reuters.

The news would certainly be welcomed in Alberta, where oil producers are grappling with persistent pipeline and rail car capacity that has seen Western Canadian Select trade at an ever-growing discount to WTI. In the United States, however, the reduced flow in Keystone has made possible a drawdown in inventories at the strategic petroleum reserve in Cushing, Oklahoma.

The PHMSA ordered the pressure reduction for Keystone after a spill of some 9,700 barrels of crude in South Dakota. Initially, the spill was estimated at 5,000 barrels but TransCanada later revised the figure. The spill was probably caused by damage to the pipeline that was already present during its construction.

Keystone immediately shut off the 590,000-bpd pipeline, but reopened it at lower pressure two weeks later. The timing of the spill, however, was very bad for TransCanada as it awaited the Nebraska Public Service Commission to decide on another, very controversial project: the Keystone XL pipeline. Still, despite the vocal opposition and the worry that the spill could tip the scales against Keystone XL, the Nebraska regulators voted in favor of the new pipeline.

Related: Cheap Hydrogen Could Soon Become A Reality

Earlier this week, Reuters reported that TransCanada will begin work on Keystone XL this fall, citing a letter from the State Department to Native American communities in Montana, near the route of the pipeline. The letter warned the communities about the start of preliminary activities around the construction site, including vegetation clearing ahead of the launch of construction in 2019.

TransCanada, however, has not yet made a final investment decision on the US$8-billion project that will come as additional relief to Albertan oil producers. Despite the lack of a FID, TransCanada confirmed it expected construction of Keystone XL to begin in 2019.

By Irina Slav 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
Download on the App Store Get it on Google Play