Keystone Delay Unlikely to Stall Giant Oil Companies

[xchrom]

http://www.commondreams.org/headline/2011/11/12-0

With the Keystone XL pipeline on hold, the giant companies tapping Canada’s oil sands will turn to Plan B — existing pipelines to the United States.

Those pipelines, which now carry slightly more than 1 million barrels a day from Canada’s oil sands to the United States, can be expanded by adding pumping stations. Some companies, notably Enbridge, already have plans to boost the capacity of their lines and speed the journey of crude from Alberta to Texas.

“It’s inevitable that it will get here. This oil will have to find a market,” said Fadel Gheit, oil analyst with Oppenheimer & Co. “All these competing pipelines are going to rethink their strategy.”

That would disappoint foes of the Keystone XL pipeline, who hope that the delay or defeat of the project would impede the growth in output from the oil sands, whose exploitation releases 5 to 15 percent more greenhouse gases than the average crude used in the United States.

Asked what the Keystone delay would mean for oil sands development, a spokesman for Chevron, which owns 20 percent of one of the oil sands projects, said: “The Keystone decision has no implications for Chevron.”

[Sarah Ibarruri]

1. This is wonderful news! nt

[Philosopher King]

2. There is a demand, so they will find a way.

I doubt they realize it, but the people standing in the path of progress have actually increased the potential for environmental hazards associated with oil pipelines. Adding pump stations will increase the pressure on the existing pipelines, which will increase the possibility of more and higher volume leak incidents.

[grntuscarora]

3. Note to self:

Send NRDC a big, fat donation.


“We’re going to fight every pipeline proposed for tar sands oil,” said Susan Casey-Leftkowitz, the Natural Resources Defense Council’s international director.