Just a few weeks ago, a rapid decline in oil prices spurred critics of the Keystone XL pipeline and even the Environmental Protection Agency to argue that approval of the project would worsen greenhouse gas emissions.
But now, oil prices are rising again thanks to turbulence in oil-producing nations and a union strike in the U.S., turning the tables on such criticism and highlighting how quickly the market can affect pipeline politics.
The Gulf Coast line – the southern leg of the Keystone pipeline system – becoming operational helped pipeline operator TransCanada to a bigger profit in the fourth quarter, beating analysts’ expectations, and leading the company to declare an 8 percent increase in its dividend, the Financial Post reports.
TransCanada will reveal a proposal to build the Upland Pipeline, a new 200-mile line to link up with North Dakota’s Bakken Shale, when it reports earnings Friday, a project which will need U.S. government approval, a person with information about the plan told The Wall Street Journal.
OMAHA, Neb. (AP) — TransCanada Corp. will temporarily suspend efforts to seize Nebraska land for its much-delayed Keystone XL oil pipeline after landowners sued, in what is one obstacle the Canadian company still faces in the 1,179-mile project.
A Holt County District judge issued a temporary injunction Thursday, keeping TransCanada from invoking eminent domain along the proposed Keystone XL route in northern Nebraska while a lawsuit by landowners in that county plays out. TransCanada agreed to the order, hoping to get an accelerated trial schedule so that it can quickly resolve the legal disputes.
The White House did not offer any public response Wednesday to final passage of the Keystone XL pipeline approval bill, but an aide said President Barack Obama isn't rethinking his opposition to the measure.
"As we have made clear, the president will veto this bill," said an aide on condition of anonymity.
The bill passed the House late Wednesday, 270-152, clearing it to be sent in the coming days to Obama's desk. His advisers have said he will veto it because it intrudes on the presidential cross-border permit process, which continues at the State Department.
TransCanada officials and Canada's top diplomat to the U.S. on Wednesday each challenged new greenhouse gas concerns surrounding the Keystone XL oil sands pipeline, which were raised last week by the Environmental Protection Agency in comments to the State Department.
TransCanada's president Russ Girling filed a letter with the department questioning EPA's assertion that low oil prices should prompt a fresh estimate of the line's impact on oil sands carbon emissions -- which could further delay a final decision on the project.
Separately, the government of Prime Minister Stephen Harper made public its objections to EPA's stance via a letter to Secretary of State John Kerry from Canada's U.S. ambassador Gary Doer.
"One is left with the conclusion that there has been significant distortion and omission to arrive at EPA's conclusions," Doer wrote in the letter, dated Monday.
The showdown over the Keystone XL oil pipeline between Republicans in Congress and President Barack Obama sees its next act unfold this week.
The GOP-led House plans on Wednesday to pass and send to his desk a bill approved by the Senate to authorize the $8 billion line from Canada, according to a schedule issued late Friday by House Majority Leader Kevin McCarthy, R-Calif.
As the approval process for the Keystone XL pipeline continues to drag on, project owner TransCanada will likely start moving oil by rail, CEO Russ Girling said in Toronto Wednesday, the Financial Post reports.
Dropping allowable ozone levels would choke off economic growth, according to a letter 269 business groups sent to President Obama Wednesday, in a move organized by the National Association of Manufacturers, The Hill reports.
The reported decline in U.S. crude inventories helped oil prices reverse a recent slide Wednesday. Light, sweet crude for September delivery gained 81 cents, or 1.7 percent, to settle at $48.79 a barrel on the Nymex, while in London, Brent inched up 8 cents to $53.38, The Wall Street Journal reports.
Continued problems at the clean coal project in Kemper County, Mississippi moved Southern Co. to book a $14 million charge in the second quarter, although the utility’s profit grew by more than 2 percent overall, helped by warmer weather, The Wall Street Journal reports.
To power some of its delivery fleet, UPS is buying as much as 46 million gallons of renewable diesel—made from palm oil, waste oil and animal fat, among other sources—that's coming from three different suppliers, The New York Times reports.
Stocks of ultra-low-sulfur diesel, or ULSD, rose about two million barrels last week, to reach nearly 124 million barrels—the highest since the Energy Information Administration began collecting data on it 11 years ago, Platts reports.