TransCanada Corp.s proposed Keystone XL pipeline remains
a pivotal event in the energy tubulars market, according to
most sources, even after the head of a natural resources
company recently claimed that U.S. shippers no longer need the
"People are frustrated
enough to be seeking alternatives, but that doesnt make
the viability go away," Kurt Minnich, manager of Tulsa,
Okla.-based Pipe Logix LLC, told AMM.
While most material
for the proposed 1,179-mile, 36-inch-diameter crude oil
pipeline has already been produced, the project, if approved,
is still expected to give the market a boost.
mental. Its not so much production- and logistics-based.
This is the first intra-country pipeline that hasnt been
approved," one energy tubular market participant said.
The debate comes after
Harold G. Hamm, chairman and chief executive officer of
Oklahoma City-based Continental Resources Inc., reportedly said
in an interview that the Keystone XL pipeline was no longer
"Not for our Bakken
(crude oil). And is it needed for the industry? I dont
think so ... not in the U.S.," he said, adding that "rail has
been a big factor and, you know, proven to be a very effective
didnt respond to a request for comment.
"There is still
significant interest in moving Bakken crude to the Gulf Coast,
and Keystone XL will provide that service to producers. As our
chief executive officer said recently, we have a waiting list
for customers interested in securing capacity on Keystone XL,"
a spokesman for Calgary, Alberta-based TransCanada told
AMM in an e-mail response to Hamms comments.
He also pointed out
that media reports went on to say that Continental Resources
remains a shipper on the line despite the remarks.
On rail replacing
pipelines, the spokesman said that it "may be a flexible,
short-term solution but pipelines and Keystone XL, in
particular, are more efficient from a safety, environmental and
While Keystone XL is
still mired in red tape, Calgary-based Enbridge Inc. recently
received approval for its Northern Gateway project, a line that
would carry tar sands oil to Canadas west coast for
export to Asia (
amm.com, Dec. 20).