• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 3 hours So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 7 hours Peak Shale Will Send Oil Prices Sky High
  • 9 hours "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 22 mins Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 8 hours Charts of COVID-19 Fatality Rate by Age and Sex
  • 1 hour CDC covid19 coverup?
  • 4 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 1 day “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 16 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 1 day Who decides the Oil costs?
  • 1 day Blowout videos

Vital Canadian Pipeline To Remain Offline After Oil Spill

Vital Pipeline

The section of the Keystone oil pipeline in North Dakota where some 9,000 barrels of crude spilled last month will remain shut until operator TC Energy, formerly TransCanada, submits a restart and return-to-service plan.

That’s an order by the U.S. Pipeline and Hazardous Materials Safety Administration, which found if the pipeline continued operating before repairs were done, it would be dangerous for local communities and the environment, Reuters reports.

“After considering the age of the pipe, the circumstances surrounding the failure, the hazardous nature of the product being transported, the pressure required for transporting the material, the other recent failures of the Keystone Pipeline in 2016 and November 2017, .... I find that a failure to issue this Order expeditiously to require immediate corrective action would result in likely serious harm to life, property, and the environment,” a PHMSA official said in the order.

In a separate report, Reuters said workers for TC Energy had already plugged Keystone in that section in order to access the damaged area and see what caused it. It remains unclear how long the repairs would take but one thing is certain: the incident would not go unnoticed by pipeline opponents.

Related: What’s Really Behind The Ethanol Crisis?

This is the second shutdown of the 590,000-bpd pipeline that transports Albertan crude to the United States. In mid-October, TC Energy itself shut down the pipeline declaring force majeure after severe snowstorms in Manitoba.

The Keystone pipeline is one of the few vital outlets for Canadian crude and any disruption in its operation is bound to affect prices sharply due to the lack of alternative outlets. Unfortunately for the industry, there were several spills from the pipeline over the last ten years, as noted in the PHMSA order, which will strengthen the anti-pipeline arguments of various groups.

The immediate effect, however, will be on Canadian crude prices, which although much higher than their December 2018 trough, are still trading at a substantial discount to WTI.

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