Who cares about the Keystone XL oil pipeline? Not U.S. refiners

Date of Article: September 6, 2013

Source: Globe and Mail

Author: Michael Babad

Link: www.theglobeandmail.com/report-on-business/top-business-stories/who-cares-about-the-keystone-xl-oil-pipeline-not-us-refiners/article14157605/

Who cares about Keystone?
Canadian oil companies may be pushing for the Keystone XL pipeline to the U.S. Gulf Coast, but American refiners don’t appear overly troubled, The Wall Street Journal reports.

The U.S. refiners are coming around to the idea that the controversial TransCanada Corp. project will never be built, the news organization says, but “they don’t particularly care” as other methods of transporting Alberta oil, such as rail, pick up steam.

The massive pipeline has been held up by environmental concerns that forced the Canadian company to reroute it, and seek approval a second time.

TransCanada remains hopeful the U.S. government will approve of its new plan, but there has been no signal to date.

So, the Journal reports, refiners are taking other steps.

Valero Energy Corp., for example, which had initially pegged its hopes on Keystone XL, is now taking other steps, such as overhauling rail terminals.

“If we just sat around and waited for Washington, we’d never get anything done,” a spokesman for Valero told the news organization.

Citing statistics from the American Association of Railroads, the Journal noted that almost 200,000 rail cars in Canada transported oil or fuel in the first seven months of this year, which marks a 20-per-cent jump from a year earlier.

At the same time, refiners are using more oil from Texas and North Dakota, the Journal said.