Pipeline Revival | Russell T. Rudy Energy LLC
Throughout the presidential campaign it was clear that Donald Trump wanted less federal involvement in energy and more private investment in infrastructure. “World Oil” reports that his election has resuscitated two major pipeline projects: Energy Transfer Partners’ Dakota Access, and TransCanada’s Keystone XL.
Energy industry observers speculate that if the Dakota Access project is not approved by the time Trump is inaugurated, it should be shortly thereafter. Vicki Granado with Energy Transfer Partners observed, “We remain focused on completing construction of this important energy infrastructure project with the expectation that it will be in service in the first quarter of 2017.” The $3.8 billion pipeline would ship crude from the Bakken shale in North Dakota.
After much litigation and political wrangling, Barack Obama refused to approve the $8 billion Keystone XL pipeline. This project would connect the Canadian oil sands with refineries on the U. S. Gulf of Mexico. During the campaign Trump said he would approve Keystone in return for a share of the profits. Apparently that condition has not affected TransCanada’s commitment to the project. Keystone would provide a $3 billion boost to the U. S. economy, 42,000 jobs, and tens of millions of dollars in property taxes, according to the company.
Approval of Keystone by the U. S. would also take pressure off the government of Canadian Prime Minister, Justin Trudeau, to approve an alternative route for oil sands gas to the East coast. This route would pass through relatively heavily populated Quebec where there is a great deal of opposition. U. S. approval of Keystone might provide us with a diplomatic quid pro quo.
Erika Coombs, with BTU Analytics LLC, observed that approval of these two pipeline projects by the Trump administration would not pre-empt all opposition, but would deny opponents a national stage on which to voice their concerns. She concluded, “It’s a step in the direction of more infrastructure getting built. The opposition doesn’t still have the same support from the government at the executive level.”
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/11/10/trump-win-revives-keystone-hopes-boosts-dakota-access-outlook .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
