American Study finds Keystone XL Pipeline Would Benefit U.S. Economy
CALGARY, Alberta - TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) highlights the findings of a new, independent study that says the Keystone XL pipeline is needed to replace dwindling crude oil supplies at U.S. refineries. The study also found the transportation and processing of oil sands crude would inject $100-600 million into the U.S. economy each year.
The study was prepared and released by the not-for-profit organization the Energy Policy Research Foundation, Inc. (EPRINC). EPRINC found that due to lower volumes of oil being shipped to the U.S. from Mexico and Venezuela, U.S. refiners are seeing their needed supply decline.
The study notes that TransCanada is looking to transport U.S. crude from the prolific Bakken oil formation in North Dakota and Montana - providing producers with access to the Oklahoma and U.S. Gulf Coast markets. EPRINC's report found that increasing transportation efficiency and allowing Bakken producers access to new refining markets will have the added benefit of improving the well-head value for U.S. crude oil from the Bakken formation.
EPRINC went on to say Keystone XL benefits U.S. refineries by supplying them with an efficient, secure supply of oil to support the 14 million barrels that are refined each day (10 million imported), and increasing operating margins for these American refineries - many of whom made expensive upgrades in complex facilities that need heavy oil.
"This study supports what TransCanada has been saying for months - that Keystone XL would provide a needed, stable supply of oil to U.S. refineries and provide long term economic benefits to U.S. oil producers, U.S. refiners and the American economy," said Russ Girling, TransCanada's president and chief executive officer.
During construction, Keystone XL would create 13,000 jobs and further produce 118,000 spin-off jobs for local businesses and companies that would benefit from the $20 billion Keystone XL would inject into the U.S. economy.
"Our Keystone XL project is shovel-ready and we are set to begin construction once approvals are received," added Girling. "This project is supported by a number of major U.S. unions and will be totally financed by the private sector with no government stimulus funding."
Keystone XL is a proposed extension to the existing Keystone oil pipeline system that is currently shipping oil to refineries in Illinois. The $7 billion Keystone XL project would transport 500,000 barrels per day of crude oil from Canada to Gulf Coast refineries in Texas. The pipeline has contracts for 75 per cent of the line's capacity over an average term of 18 years.
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 60,000 kilometres (37,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: http://www.transcanada.com/