Commodities

Keystone XL Pipe

What is Keystone XL pipe?

The Keystone XL pipeline transports oil from Alberta, Canada, to refineries in the United States. The final stage of the Keystone XL pipeline will be developed by TC Energy (formerly TransCanada Corporation), which has built several other pipelines between Canada and the United States since 2010.

In March 2019, then-President Donald Trump granted Presidential permission to build a pipeline across the international border between the United States and Canada. However, on January 20, 2021, President Biden signed an executive order revoking the license for the Keystone XL pipeline.

key takeaways

  • The Keystone pipeline was proposed by TC Energy (formerly TransCanadian Corp.) in 2005 to transport new discoveries of hard-to-recover heavy oil in Canada’s oil sands to refiners in the United States.
  • The piping system is 2,687 miles (4,324 kilometers) long.
  • Keystone has been controversial for years over concerns about its impact on the local and global environment.
  • On January 20, 2021, President Joe Biden revoked the construction permit for the Keystone XL pipeline.

Learn about Keystone XL pipes

The Keystone Pipeline was proposed by TransCanada Corp. in a press release dated February 9, 2005, which stated: “TransCanada is in the business of connecting energy supplies to markets, and we see this opportunity as providing valuable services Another way for our customers. Converting one of our natural gas pipeline assets to oil transportation is an innovative, cost-competitive way to meet pipeline expansion needs to accommodate the increase in Canadian crude oil production over the next decade. expected growth.”

The first stage of the pipeline runs from Hardesty, Alberta, to the junction in Steele, Nebraska, to the Wood River Refinery in Roxana, Illinois, and north of Patoka, Illinois Patoka Oil Terminal Hub. The second section runs south from Steele, Nebraska, through Kansas, to the oil hub and oil depot at Cushing, Oklahoma, and then south to the Netherlands, Texas, Serves refineries in the Port Arthur, Texas area. The third stage is the Houston Transverse Pipeline, which transports crude oil from a pipeline in Liberty County, Texas, to refineries and terminals in the Houston area.

In November 2015, President Barack Obama announced that his administration would not approve the construction of the pipeline, furthering its commitment to combating climate change. President Trump signed an executive order in his first week in the Oval Office, clearing the way for the pipeline project. Republicans had argued that construction of the pipeline would create more jobs and boost the economy. On January 20, 2021, President Joe Biden revoked the construction permit for the Keystone XL pipeline. TC Energy said it halted construction earlier that same day.

How the Keystone Pipeline Works

The Keystone system transports diluted bitumen and synthetic crude oil from Alberta through Montana, South Dakota, Nebraska, Kansas and Oklahoma to locations in Texas, Illinois and Russia. Refinery in Klahoma. Canada has substantial oil reserves in the oil sands. This oil is considered a heavy oil and requires a different refining process than other types of oils. The production of heavy oil releases particulate matter, such as soot, as well as chemicals such as sulfide, hydrogen cyanide and sulfur. The completed Keystone XL pipeline is estimated to be capable of transporting more than 800,000 barrels of oil per day.

The Keystone pipeline has been criticized by environmental groups, politicians and residents of the states it passes through.These groups are very interested in the proposed route near the Sandhill area of ​​Nebraska and Ogallala Aquiferwhich provides a significant portion of the water used to irrigate crops in the United States. Asphalt piped into the U.S. could lead to higher greenhouse gas emissions.

For example, the National Resource Defense Council (NRDC) has filed lawsuits in 2017, 2019 and July 2020 to halt pipeline construction.According to the NRDC, tar sands oil is thicker, more corrosive than typical crude oil, and more prone to leaks and spills through pipelines. The group said the most recent spill occurred in October 2019, resulting in a 378,000-gallon oil spill in North Dakota.

Proponents of the pipeline say it will increase oil supplies to the United States and that oil from friendly neighbors will increase security.

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