February 10, 2015

Keystone XL—A Key Addition to North America’s Infrastructure

The Pipeline would directly link the World’s largest Refining Center to the World’s third-largest Oil Reserves

The Keystone XL pipeline is as important an infrastructure project as there has been in a long time.  It would connect the world’s largest refining center on the U.S. Gulf Coast to the world’s third largest crude oil reserves in Canada and the second-largest U.S. reserves along the way.  It would feed into one of the world’s largest crude oil trading hubs in Cushing, Oklahoma where the internationally important West Texas Intermediate (WTI) benchmark price is determined.  And, it would interconnect with a U.S. pipeline network that could offer potential alternative routing options.

However, President Obama has said that “Allowing the Keystone pipeline to be built requires a finding that doing so would be in our nation’s interest.  And our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution.”  This position focuses the decision on the higher rate of greenhouse gases (GHG) that oil sands production generates compared with most conventional crude oil production and implies that the Keystone project with a Canadian throughput capacity of 730,400 barrels per day (b/d) holds sway over Canadian oil sands output. 

To read the full report, click here or on the file below.