Let’s talk about the logistics and importance of the Keystone Pipeline

Oil is very important in our day- to-day life. All people all over the world depend on oil products mainly for energy production and other uses. To enhance accessibility to this important natural resource, an efficient transportation system needs to be put in place. That is why US and Canada have a outstanding transportation system, famously referred to as Keystone Pipeline that makes oil delivery fast, cheap, safe and convenient. Get to know exclusive details about keystone pipeline actual facts, bills, news and many more.

What is the Keystone Pipeline?

Keystone pipeline is a pipeline system found in Canada and US which that supplies barrels of oil between the two countries. It starts from western Canadian sedimentary Basin in Alberta, Canada and stretches to oil refineries found in Texas and Alberta States in the US. This amazing pipeline system also extends to oil tank farms and oil tank pipeline distribution centre in Cushing Oklahoma. It was commissioned to begin operation in 2010.

Keystone Pipeline Facts

Keystone pipeline system is divided into four main phases. The first three phases are currently running while the last phase , Keystone XL pipeline is awaiting for approval before being implemented.

Phase 1

This is the first phase of keystone pipeline. It supplies oil from Hardisty, Alberta through distance of 480 km to the junction of Steel City in Nebraska. It then extends to Wood River Refinery in Roxana, Illinois state and Patoka Oil Terminal Hub of Patoka, Illinois. This costly project was completed in 2010. The very year the entire keystone pipeline system was commissioned.

Phase 2

This was the 2nd phase. Also referred to as Keystone crushing extension. It runs a distance of 480km from Steel City to storage and distribution facilities, also called tank farm that are located in Cushing, Oklahoma. This wonderful project came to completion in February 2011.

Phase 3

It is the third phase and is also called Gulf Coast Extension. It stretches over a large distance of 784 km. It starts from Cushing in Oklahoma to oil refineries at Port Arthur in Texas. The first segment of this third phase was completed in January 2014.

Later on, a lateral pipeline was added to the project, which connected it to refineries at Houston in Texas. Its terminal is most likely to be completed towards the end of this year.

Phase 4

The fourth phase is the much talked Keystone XL which is still a proposal and is waiting for approval.

In terms of ownership, the fact is that Keystone Pipeline is no longer owned by the two companies that started it in partnership. These are TransCanada Corporation and ConocoPhilips. TransCanada Corporation became the sole owner when it received regulatory approval on Augast 12th 2009 to buy ConocoPhilips interest.

Other parties have also tried to make commitments on the proposed Keystone XL pipeline in order to get 15% of ownership. Valero Energy Corporation is on them.

Keystone XL Pipeline

Keystone XL pipeline refers to a mega project which was proposed in 2008 as an expansion of the original Keystone pipeline and which is still waiting for approval by the US government. It belongs to Phase IV of Keystone pipeline projects.

If Keystone XL proposal goes through, it will be duplicate the First Phase between Hardisty, Alberta, and Steel City Nebraska with a big sized pipe and a much shorter route. This extraordinary project will pass through Bakar Montana. It will also involve the addition of American crude oil from Williston Basin Montana and North Dakota regions.

Unlike other oils in the previous keystone phases, Keystone XL will involve synthetic crude oil called syncrude as well as diluted bitumen, commonly referred as dilbit from the oil sands of Canada in North America.

The proposal is however facing a lot of criticisms from environmentalist who claim that it will have a negative impact on the environment. US president Barak Obama rejected the application but efforts are made to ensure that it sails through.

Keystone Pipeline news

Keystone news has mainly revolved around the proposed project, Keystone XL pipeline. This enormous project has elicited numerous reactions and criticism that has hit headlines in many media houses in US, Canada and other parts of the world.

To begin with, the project has received much criticism from sections of people. For instance, environmentalists have seriously opposed the proposal and even gone to the streets to protest against it. They claim that Keystone XL pipeline has serious negative implications on the environment. This became the headline topic in many media houses as news.

Minority politicians in the US Congress also criticized the proposed project.

In addition, when the application was presented to President Obama for approval in 2012, he rejected it amidst protests from people on the project’s effect on environmentally sensitive Hills region in Nebraska. Obama supported his decision by stating that the project’s deadline had precluded an assessment into its effect on the environment.

This prompted the TransCanada corporation to change Keystone XL pipeline proposed route to lessen on pollution of environment. This new route was approved by Nebraska governor Dave Heineman in January 20213.

On 18th April 2014, Obama administration made an announcement that the review of keystone XL pipeline had been extended indefinitely, pending the result of a legal challenge to Nebraska sitting law firm.

This turn of events in this Keystone XL Pipeline project was becoming more encouraging and interesting as well. On 9th January 2015, the Supreme Court in Nebraska paved way for construction. The House voted for the pipeline on the very day. It was quite interesting.

Keystone Pipeline Bills

By January 2015, keystone pipeline bill had been passed by both the Senate and later by House of Representatives after taking into consideration the amendments proposed by the Senate.

In March 2015, the Senate voted but failed to override President Obama’s veto of the bill. This keystone pipeline bill therefore did not meet the 2/3rd requirement for overriding a president’s veto according to the US constitution.

On 15th of June 2015, it was all over headlines when House Oversight Committee threatened to summon US State Department for holding back on the project review records.

Later on in November 2015, TransCanada, made a request to Obama administration to have the permit application for the Keystone XL pipeline project suspended.

In conclusion, Keystone project is indeed important to the people of both US and Canada. Oil delivery between different states is fast and efficient. It also makes oil refining an easy process. The facts are well elaborated and it is evident that Keystone costly but beneficial project. Even though the proposal for the fourth phase has not been approved ,it is very likely that it will sail through and the construction of Keystone XL pipeline will commence.