API plans major campaign to support Keystone XL pipeline project

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, Dec. 8 -- The American Petroleum Institute is preparing a major grassroots and advertising campaign to support the proposed Keystone XL crude oil pipeline project, an API official disclosed. “We’ve been promoting the economic benefits and jobs this resource can bring to the US for some time, and we don’t think it has been fully registering with the public,” Cindy Schild, API’s refining issues manager, said on Dec. 8.

The campaign’s details are still being worked out, but API expects to launch it in January, she told reporters in a teleconference. “It’s a matter of economic benefits and a matter of jobs. That’s what we’re going to communicate with our vast grassroots network,” Schild said.

TransCanada Corp. has proposed building a 1,661-mile, 36-in. pipeline to transport oil produced from Canadian oil sands from Hardisty, Alta., to a delivery point near Nederland, Tex., to serve refineries at nearby Port Arthur. It is awaiting approval by the US Department of State, which is required for cross-border projects.

A coalition of 20 environmental groups launched an advertising campaign on Nov. 30 implying that allowing Keystone XL to be built could lay the foundation for a disaster comparable to the oil spill from BP PLC’s deepwater Macondo well in the Gulf of Mexico. The groups reportedly are spending $500,000 to urge US President Barack Obama to intervene and stop the Keystone XL project.

Schild said roughly half of the 1.9 million b/d of oil that Canada supplies to the US comes from oil sands. “We will consume more oil, and much of it will continue to be imported,” she maintained. “Every barrel we import from Canada will replace oil from less secure sources. The heavy oil we import from there already is replacing heavy oil we used to import from Mexico and Venezuela, where has been in decline.” 

John Kerekes, API’s central region director, said a 2009 Canadian Energy Research Institute study estimated that 342,000 US jobs would be created, largely in the Midwest, from the proposed pipeline’s construction. “Some in Congress are urging delaying this major pipeline project. I can say that most people I’ve talked to in the Midwest favor it,” he said. “There are 400 newly certified pipeliners out of Lincoln, Neb., ready to go to work once the project gets its permits.”

The project’s potential US economic benefits go beyond the pipeline’s construction, Schild noted. “Much of the money we send to Canada to import this oil will come back as Canadians buy US goods and services,” she said.

Kerekes said refineries in the upper US Midwest already are processing oil from Canadian oil sands transported by existing pipelines. “Keystone XL is trying to extend it to Oklahoma and beyond. It also would provide an on-ramp for crude oil being produced in North Dakota and Wyoming which now is being transported by trains and trucks,” he said.

Schild said refineries across the country have spent substantial sums for years to increase heavy crude processing capacity. “In the Upper Midwest, the two Minnesota refineries are almost entirely Canadian supplied, as is ExxonMobil’s at Joliet and Citgo’s in Lemont, Ill.,” added Kerekes. “Companies have been expanding their refineries’ capacity across the Midwest.”

“We think the project will be approved because there are so many compelling economic reasons to build it,” said Schild. “This is a huge, huge deal for what this country needs right now, and it’s only one project. Our industry is investing heavily in infrastructure.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Bear Head LNG requests DOE permits to export US natural gas

03/03/2015 Liquefied Natural Gas Ltd.’s wholly owned subsidiaries, Bear Head LNG Corp. and Bear Head LNG LLC (USA), have filed an application with the US Depa...

TAP initiates contracts for offshore section construction

03/03/2015 Trans Adriatic Pipeline (TAP) AG has launched two pre-qualification contracts for building the natural gas pipeline’s 105-km offshore section throu...

Pennsylvania governor proposes natural gas severance tax

03/03/2015 Pennsylvania Gov. Tom Wolf proposed a $29.9 billion budget on Mar. 3 that includes $2.5 billion of net tax increases for fiscal 2016, including a 5...

Pennsylvania governor asks Obama for stronger crude-by-rail rules

03/02/2015 Noting that 60-70 trains/week carry Bakken crude oil across Pennsylvania to the Philadelphia area or other East Coast refineries, Gov. Tom Wolf (D)...

Gassco takes over as operator of Knarr pipeline

03/02/2015 Gassco has taken over as operator of the Knarr pipeline, which will transport rich gas to the Shell-Esso Gas and Liquids (Segal) system and St. Fer...

IHS: Crude transported by Keystone XL would be consumed in US

03/02/2015 Most, if not all, of the crude oil that would be transported via the proposed Keystone XL pipeline to the US Gulf Coast would not be exported, and ...

Obama vetoes bill approving Keystone XL crude oil pipeline

03/02/2015 US President Barack Obama vetoed S. 1, authorizing construction of the proposed Keystone XL crude oil pipeline, saying that Congress had attempted ...

BP: Global energy demand to jump 37% by 2035

03/02/2015 Global demand for energy is expected to rise by 37% from 2013 to 2035, or by an average of 1.4%/year, due in large part to ongoing economic expansi...

Magellan, PAA form Saddlehorn crude pipeline joint venture

02/27/2015 Magellan Midstream Partners LP and Plains All American Pipeline LP have formed Saddlehorn Pipeline Co., a 50-50 limited liability joint venture, to...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected