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Posts Tagged ‘Keystone XL’

Last week I noted that much of the oil & gas industry is waiting to see what President Trump will do. While consensus was that he would likely scale back regulations, the question was how fast and how consistent he’ll be. Today—essentially the second work day of the Trump administration—gave the initial answer, as President Trump signed executive actions to advance Keystone XL and Dakota Access oil pipelines. While this does not provide the permits required to build these pipelines, it essentially paves their way for approval.

Keystone Pipeline Route

Keystone Pipeline Route

If you aren’t familiar with the Keystone pipeline system, it allows for the transportation of oil & gas production between Alberta, Canada to several refineries and distribution centers in the U.S. (including Illinois, Oklahoma, and Texas). Despite protests over the XL phase of the Keystone system, many people don’t know is that the first three phases of this pipeline are already in place (phase one since 2010). The proposed XL phase of the system—which essentially duplicates the first three phases with shorter routes, while adding in oil & gas production from Montana/North Dakota—became a battleground over climate change and the value of fossil fuels in today’s world. Given the way politics works, it also became a dividing issue between democrats and republicans. Former President Obama rejected the Keystone XL phase in 2015 while President Trump, when campaigning in 2016, insisted he would approve it.

While many in the oil & gas industry view Keystone XL as key to growing U.S. prominence in the market while reducing dependency on foreign oil, the big complaint over the Keystone XL pipeline was in the environmental danger of routing over the Sandhills in Nebraska:

Boiling sands are areas where sandy soil is so thin that groundwater can bubble up through it to the surface. In Nebraska, they are found in the Sand Hills, an ecologically sensitive region of grass-covered dunes underlain by a giant freshwater aquifer, called the Ogallala, that sustains agricultural production down the centre of America.

In addition to the unforeseen environmental consequences, others argue that the route threatens the water supply of the nearby Standing Rock Sioux tribe.

The Dakota Access pipeline—an 1,172-mile-long, underground pipeline beginning in the rich Bakken oilfields of North Dakota and ending near Patoka, Illinois—has also seen protests and push-back. Although mostly completed, the current route does not have approval. Given today’s executive orders, both the Dakota Access pipeline and the Keystone XL pipeline are closer to approval than they’ve been in years.

President Trump insisted on that both projects are “subject to terms and conditions to be negotiated by us.” While it is uncertain what this means regarding environmental impact, President Trump has already given some insight about what this means for U.S. jobs, believing that U.S. pipeline should be constructed in the U.S., thereby “putting a lot of steel workers back to work.” He also believes Keystone XL will add 28,000 construction jobs. There is expected push-back from democrats and environmentalists, but without current political maneuverability, those roadblocks may be a thing of the past.

EDIT: Revised White House stance on U.S. steel: http://www.ogj.com/articles/2017/03/white-house-keystone-xl-will-not-use-us-produced-steel.html

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Colin McKay Miller is the VP of Marketing for the SpiroFlo Holdings group of companies:

SpiroFlo for residential hot water savings (delivered 35% faster with up to a 5% volume savings on every hot water outlet in the home), industrial water purification (biofilm removal), and reduced water pumping costs.

Vortex Tools for extending the life of oil and gas wells (recovering up to 10 times more NGLs, reducing flowback startup times, replacing VRUs, eliminating paraffin and freezing in winter, etc.).

Ecotech for cost-effective non-thermal drying (for coal, biosolids, sugar beets, dairy waste, etc.) and safe movement of materials (including potash and soda ash).

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