VIDEO: Keystone XL’s rivals try humour to win supporters
Opposition to TransCanada’s (TSX, NYSE: TRP) Keystone XL oil pipeline has reached YouTube, where a recently posted video “We Quit You, Keystone XL (It’s Not Us, It’s You)” is getting thousands of views as it takes a witty approach to attracting more rivals to the project.
The controversial duct won a small, but image-key battle at the end of August when a Texas judge ruled in favour of the firm passing through a farm, after the owner had taken the Canadian company to court.
The verdict, which ensured TransCanada had eminent domain for the Keystone XL pipeline, removed one of the few obstacles left for the $7 billion extension project allowing Canadian crude to flow to Texas Gulf refineries.
And while final permitting for the pipeline can take over a year, President Barack Obama promised in March to accelerate the process, saying that Keystone will relieve a supply bottleneck at Cushing, the pricing point for U.S. crude.
Canada exports 2 million barrels of oil per day to the U.S. and almost all of it ends up at Cushing where refining capacity is limited.
Alberta production is set to more than double to 3.7 million barrels by 2025 out of a total of 4.7 million. Production in the US particularly from the Bakken basin in North Dakota will see the country ramp up current output of 7.8 million barrels to 10.9 million barrels over the next few years.