America’s Hat Can Help With Oil Demand
Getting oil from Canada to the U.S. can become quite the task. Long trips on winding roads are not the most effective or efficient way to transport oil to the U.S. What about pipelines? Whats the deal? Dan Dzombak gives us the low down and the whole issue.
…One oil pipeline operator, TransCanada (NYSE: TRP ) , is taking steps to ease the situation. Last year, the company’s Keystone Pipeline Project converted an indirect natural gas pipeline to a crude oil pipeline and extended it from Steele City, Neb., to Cushing, Okla., a major oil marketing/refining hub. The company is now pitching U.S. regulators on a new oil pipeline, the Keystone XL, to bring oil directly from the oil sands through Montana, South Dakota, and Nebraska to meet up with the expansion pipeline to Cushing.
TransCanada is also pitching regulators on an expansion from Cushing to Houston and the Gulf Coast, with the goal of bringing more oil at less cost to refineries on the coast. Another group of pipeline operators has a similar idea. In early May, Enterprise Products Partners(NYSE: EPD ) and Energy Transfer Partners (NYSE: ETP ) announced they are forming a joint venture to build an oil pipeline from Cushing to Houston.
The Keystone XL project might get a boost soon as House Republicans are working on a bill to expedite the project. In any case, if one or both projects are approved, the increased pipeline capacity will help oil sands producers sell more oil in the U.S. and be a boon for the pipeline operators.
Hopefully, between these few companies, a solid method of transit will be established. With easier transportation of oil from Canada, the panic for oil in the U.S. may die down. A little help from Canada would be a great relief here in the States.
Reported by Dan Dzombak, Read the entire article here.
This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Petro Lucre LLC D.B.A Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.