API: Keystone XL support is stronger than opposition

Opposition to the Keystone XL crude oil pipeline project has become more noisy than widespread, American Petroleum Institute officials said on Dec. 4 as Nebraska’s Department of Environmental Quality prepared to hold a public hearing on the project’s proposed new route later that day.

Support for the 1,500-mile project to transport bitumen from Alberta’s oil sands to US Gulf Coast refineries remains strong, Cindy Schild, API’s downstream operations manager for refining and oil sands, and John Kerekes, API’s Central US region director, told reporters during a teleconference.

“It’s a $7 billion infrastructure crossing five states that will mean 20,000 new jobs, including work in the building and construction trades which are suffering from 12% unemployment,” Schild said. “Longer term, it will provide a major ongoing stimulus to the US economy since 90% of the dollars we spend in Canada are returned to the US.”

She and Kerekes conceded that opposition exists, but added that it’s not clear whether it’s centered on the project itself, which also would provide some capacity to move lighter Bakken shale crude oil from North Dakota to markets, or producing and refining the Alberta bitumen itself.

“There’s not a groundswell of opposition,” said Kerekes, who planned to be at the hearing later in Nebraska. “It’s certainly noisy, and it apparently is opposed to the idea of the pipeline and not necessarily its route. There’s strong Nebraska support for the pipeline, along with this noisy opposition.”

A recent local survey found that 61% of Nebraskans back the project, Schild noted. “For most people, building the pipeline is common sense. We need the oil, and we need the jobs,” she said. “This issue is not complicated. [US President Barack Obama] should approve the Keystone XL pipeline.”

Further study needed

But BOLD Nebraska, the principal Nebraska opponent, said on Dec. 3 that its review of NDEQ’s proposed new route for the pipeline across the state found several problems. “There has been no real and independent study done on the proposed full pipeline route—NDEQ has simply published information given to them by TransCanada,” it said. “Because the NDEQ does not have any clear standards by which they are judging the route, their report is merely descriptive.”

It said more time is needed to thoroughly analyze DNEQ’s draft report, and BOLD Nebraska plans to request another 90 days to comment when its representatives testify at the Dec. 4 hearing.

Kerekes said NDEQ’s draft report followed an open and thorough review of the project. “Nebraskans and the country can have great confidence in the agency’s work, and should have equal confidence in the draft report which it issued at the end of October,” he said. “TransCanada has twice moved the pipeline’s route in response to public concerns to build better protection for the environment.”

Schild said the project’s analyses mark the first time that life cycle impacts have been considered, but added that they should cover consequences from the wellhead to the motorist’s tailpipe, where 75% of the impacts occur.

“When you compare what’s left, studies show that crude oil from Canada’s oil sands is comparable to heavy crude we’ve refined in the US from California, Venezuela, and Mexico,” she said. “The question is whether you want to process this Canadian crude in the US at some of the most sophisticated refineries in the world, or in China and other overseas markets where they aren’t.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Deloitte studies oil supply growth for 2015-16

02/04/2015 A Deloitte MarketPoint analysis suggested large-field projects, each producing more than 25,000 b/d, could bring on 1.835 million b/d in oil supply...

Oil, gas infrastructure investments essential, House panel told

02/04/2015 Investments in oil and gas transportation and storage should move ahead because they are essential in continuing the US economic recovery and North...

Petrobras CEO, five other senior executives resign

02/04/2015 Maria das Gracas Foster, chief executive officer of Petroleo Brasileiro SA (Petrobras) since 2012, has resigned along with five other senior execut...

MARKET WATCH: NYMEX crude oil prices reach 2015 high

02/04/2015 Crude oil prices surged more than $3/bbl on the New York market Feb. 3, closing at the highest level so far this year, but some analysts believe th...

Chevron unit farms into Mauritania offshore blocks

02/04/2015 Chevron Mauritania Exploration Ltd., a wholly owned subsidiary of Chevron Corp., has agreed to acquire 30% nonoperated working interest in Blocks C...

Saetre named Statoil president, CEO

02/04/2015

Eldar Saetre has been named president and chief executive officer of Statoil, succeeding Helge Lund, who resigned in October.

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

BP trims capital budget by $4-6 billion

02/03/2015 BP PLC plans an organic capital expenditure of $20 billion in 2015, down from the previous guidance $24-26 billion. Total organic capital expenditu...

EPA suggests DOS reconsider Keystone XL climate impact conclusions

02/03/2015 The US Department of State might want to reconsider its conclusions regarding potential climate impacts from the proposed Keystone XL crude oil pip...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

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
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

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