Democratic Senator Says Keystone Pipeline Still Facing Issues

New executive orders expediting the approval and construction processes for oil pipeline projects may create jobs, but issues of sourcing and exports could slow negotiations for TransCanada’s extension of the Keystone pipeline, Sen. Heidi Heitkamp of North Dakota said Wednesday.

“I think there’s going to be a lot of pressure on the sourcing of the pipe,” the Democratic senator said on CNBC’s “Squawk Box,” referring to the long-delayed Keystone project. “We don’t know what the source of that pipe is. That’s going to be an issue.”

On Tuesday, President Donald Trump signed two executive orders making it easier to build the Keystone XL and Dakota Access pipelines. Trump said the projects would create thousands of construction jobs.

Trump also signed an order insisting that pipelines built in the United States use American materials, adding that the terms of agreement with the two companies will be subject to negotiation.

The Keystone pipeline begins in the oil sands of Alberta, Canada, flows to Nebraska, then out to Texas and Illinois. The proposed extension of the project would create a direct route from Alberta to Nebraska, with an additional terminal where the oil is extracted in Montana.

“I also think it might be an issue on whether that oil gets exported, which is something we considered,” Heitkamp said. She said an existing contract with Texas-based refiner Valero Energy to export the Canadian crude could complicate talks with TransCanada because though the pipeline is meant to lessen U.S. dependence on foreign oil, and Valero plans to export a sizeable amount overseas.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza