TransCanada ‘May’ Shorten XL Pipeline, Bypassing Need for Federal Approval

For those of us who knew this was not over, but hadn’t considered this exact scenario, read it and…weep or growl or…I dunno:

From Bloomberg News today:

“TransCanada Corp. (TRP) may shorten the initial path for its rejected Keystone XL project, bringing oil from Montana’s Bakken Shale to refiners in the Gulf of Mexico and removing the need for federal approval.

“There certainly is a potential opportunity to connect the Bakken to the Gulf Coast,” Alex Pourbaix, TransCanada’s president of energy and oil pipelines, said in a telephone interview today. “That is obviously something we’ll be looking into over the next few weeks.”

TransCanada’s $7 billion Keystone XL proposal to bring crude from Canada’s oil sands to the Gulf was rejected yesterday by the Obama administration. The project required U.S. approval because it crossed the border with Canada. The company may seek that approval after it builds the segment from Montana to the Gulf, Pourbaix said.

The Bakken shale-rock formation is estimated to hold as much as 4.3 billion barrels of technically recoverable oil in North Dakota and Montana, according to a 2008 U.S. Geological Survey report. Oil production in North Dakota surged 42 percent to 510,000 barrels a day in November, exceeding the output of Ecuador.

Production in the Bakken field may reach 750,000 barrels a day this year, Edward Morse, managing director of commodities research for Citigroup Inc., said at a conference in Calgary today.”

We certainly know that all those pipes have been just sitting around waiting half of forever to be put to usein advance of securing the permit.  We also know that in November, TransCanada, out of the goodness of their little hearts, rerouted the pipeline to by pass the sensitive and lovely Nebraska Sandhills (after those doughty Cornhuskers blew their shucks and niblets and protested with the DFH’s and rude environmental activists, and kicked some Nebraskan politicians’ royal asses…)

TransCanada CEO Russ Girling apparently told investors today that they had already spent $1.88 billion on the project, and own 93% of the necessary land needed.

“The pipeline has already won support in Montana, South Dakota,  Oklahoma and Texas.

“There’s no bigger advocate for the Keystone pipeline than me,” Montana Governor Brian Schweitzer, a Democrat said yesterday in a telephone interview. “We have plenty of oil in Montana, we need the ability to get it to market.”

Sorry, dudes, no permit.  (Wink*, wink*)

I apologize for the cut-and-paste; figured you’d want to know what’s afoot sooner than later.

http://www.youtube.com/watch?v=EKuaGBGOii0

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