By the way, the southern portion of the Keystone pipeline is about to go fully operational

posted at 3:21 pm on October 4, 2013 by Erika Johnsen

In their relentless quest to stymy the Keystone XL pipeline, the eco-radical crowd has determinedly and consistently neglected to mention several inconvenient truths plaguing their ill-advised campaign, including that 1) the United States is going to need to lay a lot more pipeline to our already-existing hundreds of thousands of miles’ worth of infrastructure in the coming years to cope with our ever-growing shale boom; 2) while they continue to protest the northern XL extension, the Keystone pipeline running through the southern portion is already well underway and practically complete; 3) the Keystone pipeline won’t merely be accommodating Canadian oil, but domestic products as well; and 4) that TransCanada will find a way to develop and bring their oil sands to market with or without the help of the most efficient, environmentally friendly, safe, and cost-effective method of transport — a.k.a., the fully extended Keystone pipeline (the greens’ penchant for counterproductivity never ceases to amaze).

Oh, and speaking of the southern portion of the Keystone pipeline being practically complete, we can pretty much go ahead and move that over to the “complete” category, via the WSJ:

U.S. oil prices rose 2% Wednesday, the biggest jump in two weeks, as traders and investors bet that the opening of a new pipeline will help alleviate a glut of crude in the Midwest.

Investors, traders and analysts in recent weeks have been focused on the race by pipeline operators to catch up with the oil-output boom in the U.S. For almost three years, U.S. oil prices have been depressed relative to world prices and Europe’s Brent crude contract. That has been due largely to a lack of infrastructure, which has caused barrels to pile up in and around Cushing, Okla., the largest storage hub in the Midwest.

Oil futures prices on the New York Mercantile Exchange jumped after TransCanada Corp. said the southern leg of its Keystone XL pipeline, which is to pump 700,000 barrels of crude a day from Cushing to oil refineries on the Gulf Coast, was nearly complete. …

The pipeline expansion will allow U.S. oil better access to the key Gulf Coast refining region. Oil from the U.S. already has begun to displace imports, such as the higher-priced Brent, there.

This is a very timely upgrade for our pipeline infrastructure, which has been strapped for space as the oil and gas companies have come a-clamorin’ to get their wares down to the Gulf Coast refining region — and I would merely point out once more that the Keystone XL pipeline, as well as bringing oil, gas, and petroleum products from Canada, would also be a big help to the boomtown that is the North Dakota energy production scene.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Fully operational like that battlestation we were told about last year this time, or actually really fully operational?

Alberta_Patriot on October 4, 2013 at 3:28 PM

Can you imagine the economic boom that will occur in this country once we kick the communists to the curb?

As for all those environazis that want to stop the pipeline, how about we load them onto some planes, strap parachutes to their backs and drop them over North Korea, a country that has about as much electricity as we would have if we followed what they want us to do.

And they’d reel right at home in a tyrannical communist country.

turfmann on October 4, 2013 at 3:35 PM

By the way, the southern portion of the Keystone pipeline is about to go fully operational

Fully operational like functioning or fully operational like Obamacare enrollment? In other words, are there going to be glitches?

Happy Nomad on October 4, 2013 at 3:36 PM

Well, Obama has turned to Canada for one thing…


Obama outsources healthcare implementation to Canada…

Resist We Much on October 4, 2013 at 3:37 PM

Obama outsources healthcare implementation to Canada…

Resist We Much on October 4, 2013 at 3:37 PM

All Alinsky all the time.

Murphy9 on October 4, 2013 at 3:44 PM

We here in Kentucky are in the middle of the pipeline issue, and the dis-information machine is in overdrive. I have read tons of lies, distortions and downright un-factual editorials, op-eds and letters in the Lexington herald Newspaper.

Imminent Domain accusations are running rampant when not one single piece of property has even been identified to be taken, others retreat to the meme that even though the pipeline is safe and won’t cause any problems, nothing is safe enough for the environment and all fossil fuels should be banned because one day there will be a spill and everyone will die in a flaming hell.

Mind you, most of the vitriol is coming from the city of Lexington. The rest of Kentucky seems to be OK with the pipeline.

Johnnyreb on October 4, 2013 at 3:46 PM

Like ObamaOperational??? Like where oil spills all over the Northern Hemisphere???

faraway on October 4, 2013 at 3:47 PM

By the way, the southern portion of the Keystone pipeline is about to go fully operational

What? What went wrong?!

Akzed on October 4, 2013 at 3:51 PM

By the way, the southern portion of the Keystone pipeline is about to go fully operational

Isn’t that like trying to drink a milkshake with just the top half of a straw?

faraway on October 4, 2013 at 3:54 PM

“…the southern portion of the Keystone pipeline is about to go fully operational”

Note for the geographically disabled/challenged – it’s the NORTHER PORTION THAT WILL GET THE OIL FROM CANADA !!!!!!!

TeaPartyNation on October 4, 2013 at 4:05 PM

Well, Obama has turned to Canada for one thing…

Obama outsources healthcare implementation to Canada…

Resist We Much on October 4, 2013 at 3:37 PM

…because the US doesn’t have thousands of unempl. highly qualified IT people…not all white either.

Schadenfreude on October 4, 2013 at 4:21 PM

Eco-activists to deploy to TX to block southern end of Keystone XL in … 10 … 9 … 8 … Oh, hell, they know better.

Another Drew on October 4, 2013 at 4:26 PM

TeaPartyNation on October 4, 2013 at 4:05 PM

Yes, but we need this pipeline to bring Dakota oil to the Gulf also.

Another Drew on October 4, 2013 at 4:28 PM

Mind you, most of the vitriol is coming from the city of Lexington. The rest of Kentucky seems to be OK with the pipeline.

Johnnyreb on October 4, 2013 at 3:46 PM

I haven’t been to The Bluegrass State for a few years, but couldn’t you just go ahead and build a wall around Lexington to contain the stupidity? When it becomes successful you could start a franchise operation. Money to be made.

oldleprechaun on October 4, 2013 at 4:30 PM

Now that the Religion of the Warmies is collapsing, you’d think the REB would quietly sign off on Keystone and go quietly, but no, guess again.

slickwillie2001 on October 4, 2013 at 5:45 PM

Johnnyreb on October 4, 2013 at 3:46 PM

It is a single refinery in Cattleburg, KY & owned by Marathon which has kept the Capline Pipeline from being reversed and 1.2 million BPD flowing down to Louisiana from Canada, which cannot use Canadian crude but instead must have light sweet crude from the Gulf Coast or from overseas.

No other refinery up in IL, IN, OH needs the pipeline any longer.

It’s southern terminus is at St. James, LA and directly connected to the ONLY supertanker port in the U.S., LOOP (Louisiana Offshore Oil Port)via a 1 million BPD pipeline. St. James is a major pipeline hub like Nederland, TX (southern terminus of Keystone XL) & Cushing.

Kermit on October 6, 2013 at 10:11 AM

Oh and BTW, with its connect to LOOP’s storage capacity, between the two is more storage capacity than Cushing (billed as the world’s largest oil storage facility. Loop alone had 67 MILLION barrels of storage capacity.

Cushing is a collection of pipeline terminals and tank farms rather than a single entity.

Kermit on October 6, 2013 at 11:02 AM

Oh and BTW, with its connect to LOOP’s storage capacity, St. James Hub is the same capacity as Cushing (billed as the world’s largest oil storage facility. LOOP alone has 67 MILLION barrels of storage capacity.

Cushing is a collection of pipeline terminals and tank farms rather than a single entity.

Kermit on October 6, 2013 at 12:02 PM

I’m having a bit of trouble following this story and why new infrastructure in place that increases supply would boost U.S. oil prices. Shouldn’t the opposite be true? A more efficient and cheaper delivery system that increases supply should cause prices to drop.

Or is there some counter-intuitive (on the surface) trading at play here where traders are bidding up the price of U.S. produced oil so they can get their hands on it and sell it at a higher world-market price? But wouldn’t that been just as true before? The supply would have been limited to them too, and increased supply in the near future should drop the price even in that scenario.

Isn’t the current 2% jump in price completely unrelated to the almost operational southern half of the pipeline? Aren’t we just dealing with a WSJ market reporter that is just trying to sound smart and fill the pages by joining two non-related events together and incorrectly pronouncing one as the cause of the other?

willamettevalley on October 6, 2013 at 3:27 PM

I completely agree with the 2nd comment at the bottom of the WSJ article itself:

Mark Golden Wrote:

How could a pipeline coming online possibly cause prices to fall on both sides of the constraint? Keystone operation explains the decline of the Brent premium, but crude prices overall rose for some other reason, not Keystone, and not explained in this article.

willamettevalley on October 6, 2013 at 3:33 PM