Keystone oil sands pipeline ‘absolutely’ will happen

TransCanada CEO Russ Girling, told the EnergyNow program airing on Sunday that the proposed $7 billion, 3,190km Keystone XL pipeline connecting Alberta’s oil sands to refineries on the US Gulf Coast is “absolutely” going to happen and earlier the show quoted US Energy Secretary Steven Chu as saying “having Canada as a supplier of our oil is much more comforting than to have other countries supply our oil.”

The oil sands industry feeding Keystone XL has tripled in size since 1995 and the US government estimates that Canada may double its current output of heavy crude by the end of this decade. Canada currently pumps 2 million barrels per day to the US, with more than half coming from the oil sands. A final decision on Keystone XL by US President Obama is expected before the end of the year.

Earlier in September MINING.com reported that backers of the oil sands pipeline has a new weapon – Oprah Winfrey.

MINING.com reported at the end of August US State Department saying Keystone XL would not likely boost the amount of crude produced from Alberta’s oil sands, suggesting it would have limited impact on the environment.

MINING.com also reported in August because the price oil sands producers can charge for exports to the US is falling further behind the international benchmark the viability of many new projects in Alberta are threatened.

EnergyNow’s program of 18 September 2011 on the controversial Keystone XL pipeline:

Click here for the interview with the US Energy Secretary.

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