Stateline Midwest ~ May 2012

Recent fracking-related legislation in Midwest »

North Dakota's efforts to meet increased infrastructure needs, plan for post-fracking boom »

Over the past three years, the hometown of North Dakota Republican Rep. Patrick Hatlestad has doubled in population size.

Today the Army Corps of Engineers granted approval for TransCanada to begin construction on the southern portion of the Keystone XL pipeline that would end at the Gulf of Mexico. Last January, President Obama denied a National Interest Determination permit for the high-profile project that is opposed by many environmental groups because it moves large amounts of oil sands crude that have a more energy intensive extraction process than conventional crude oil. Today's announcement generally aligns with Administration's proposal from last March where they urged TransCanada to reapply for a construction permit by breaking up the project into two portions: a southern leg which needs no additional Presidential permits and a northern leg crossing the international border into the US which does.

On June 20th, the Trans Alaska Pipeline System (TAPS) marks its 35th year of operation. The 800-mile pipeline opened in 1977 after three years of construction when, at that time, it was the single-largest private infrastructure project in the world with an $8 billion price tag.

Yesterday's Christian Science Monitor ran a story that several major cybersecurity attacks on our nation's natural gas pipeline system are underway, based on alerts from the Department of Homeland Security (DHS). According to the story, at least three private alerts were sent by DHS to pipeline companies since March 29, that a wave of attacks have been occurred for months and could impact Canadian pipeline companies as well.

A number of factors make the world of refining complicated and complex. The article supplies basic information on how refineries operate, where they are located, and the general economic, regulatory, and policy challenges facing the industry.
 

The Keystone XL Pipeline was designed to bring Canadian crude oil down to the large U.S. refining markets along the Gulf Coast. The project drew intense political opposition from environmental groups over the development of oil sands, while supporters touted its energy security benefits, including much-needed pipeline capacity.

In January 2012, the Obama administration denied the project’s necessary permit to cross the international border citing arbitrary deadlines set by Congress to force a decision. The company backing Keystone XL now has decided to break up the project in two phases, which will allow domestic construction to proceed while it reapplies for a permit needed to cross the international border.

Late last week, Kinder Morgan Energy Partners announced its intention to expand the Trans Mountain Pipeline to 850,000 barrels per day. Currently, the Trans Mountain Pipeline is the only Pacific Coast outlet for Canadian crude oil to reach growing marketplaces in Asia. The news underscores the continued interest by Canadian producers and pipeline companies to search for additional markets for oils sands should US opposition persist in approving the Keystone XL Project.

Nebraska's unicameral legislature overwhelmingly approved legislation by a vote of 44-5 that would allow the state to begin its study to re-route a section of the Keystone XL pipeline that originally ran through the Sandhills region. TransCanada, the company constructing the project, would reimburse the state up to $2 million dollars for its review.