American oil producer says it doesn't need Keystone pipeline

TransCanada Corp's proposed Keystone XL pipeline has lost some backing in the US – but this time the lack of support isn't coming from politicians or environmental groups.

The CEO of Continental Resources, one of the companies that has signed up to ship crude through Keystone, recently told Reuters that the pipeline was "no longer needed."

In addition to transporting Canada's oil sands product, the pipeline is supposed to help some American producers carry their oil across the country, supporting "significant growth of crude oil production in the United States," according to TransCanada.

Pipeline plans have been dragging on for years. In the meantime, Continental has turned to railroads for transportation.

"Rail has been a big factor and, you know, proven to be a very effective way," CEO Harold Hamm said, as reported by Reuters.

The company currently transports 90% of its product via rail.

"It may be several years yet, you know, before you find out if it (Keystone XL) is going to be built," Hamm told Reuters. "It's no way to run your business."

Hamm also noted that Continental has not changed its contract with TransCanada, so it's still signed up to use the pipeline.

But Keystone doesn't depend on whether or not American producers use it. The majority of oil that Keystone would carry comes from Alberta's oil sands.

The line would provide some relief to Canadian producers as a lack of transportation capacity has created a major bottleneck  of supply in the US' midcontinent region. As a result, Canadian crude sells at a discount and the Canadian economy loses tens of millions of dollars each day, according to the Fraser Institute. 

The Obama administration is currently reviewing the pipeline. Environmental concerns have been a major obstacle to gaining approval.