U.S. May Miss Year-End Goal for Keystone XL Oil Pipeline

U.S. May Miss Year-End Goal for Keystone XL Oil Pipeline

By Arshad Mohammed, Reuters

The State Department may miss a year-end target to approve TransCanada Corp’s Canada-to-Texas Keystone oil sands pipeline, a U.S. official told Reuters on Tuesday, risking a further delay to the most important new crude oil conduit in decades.  

The official, who spoke on condition of anonymity, said the State Department still hoped to make a decision by the end of this year, which has been its target, but that its highest priority was to carry out a thorough, rigorous review. The decision has already been pushed back once.

A further delay would not only be a blow to TransCanada, it could also prolong a massive gap between U.S. and global oil prices because oil traders are counting on Keystone’s 700,000 barrel-per-day capacity to relieve a build-up of crude in the Midwest, which doesn’t have enough pipelines to ship growing Canadian output to Gulf Coast refineries for use around the United States.

The ruling, which falls to the State Department because the line crosses national borders, is forcing President Barack Obama into a decision that effectively pits environmental safety against job creation and energy security.

“While we still hope to make a decision by the end of the year, we are first and foremost committed to a thorough, transparent and rigorous review process,” said the U.S. official, who spoke on condition of anonymity.

“So we’re carefully reviewing all of the information we’ve received, including the many comments from the public, and will make a decision only after we have weighed all of the facts,” the official added.

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