The Keystone XL pipeline has been a center of controversy for many people in the country for a number of years now. The pipeline, when complete, would measure 1,200 miles long. It would run from Alberta, Canada all the way to the Gulf of Mexico. While this might seem like a massive undertaking, the country already has millions of miles of underground pipelines. Energy companies, as well as environmentalists, have different takes on the pipeline, and the politicians are trying to keep everyone happy.
Currently, the pipeline is only about 40% complete, and only two segments are done. One of the segments, measuring 485 miles, is between Cushing, OK and Nederland in Texas near the Gulf. The second segment is 298 miles, and it goes from Cushing to Steele City, NE. This actually already has oil flowing through it. The last segment, still awaiting approval, would flow from Steele City north to Alberta.
The goal of the completed Keystone XL pipeline would be to move 830,000 barrels of crude oil a day from Canada to the Gulf. The Gulf has the refineries necessary to prepare the oil. The pipeline is a cost effective and simple way to move the oil from the ground all the way to the refineries. Of course, opponents argue that there could be environmental concerns.
The construction of the pipeline’s last segment has the potential to create tens of thousands of jobs. The construction phase would last for approximately two years. After that, there would be about 50 permanent jobs on this segment of the pipeline.
With the controversy surrounding the pipeline, it makes many wonder why they don’t simply figure out another way to move the oil. They could use other pipelines, although the lines already in existence simply do not have the capacity that the Keystone XL pipeline would have. Some of the producers are looking into moving the oil by rail car. While this is possible, the cost is far greater than the pipeline. This would ultimately cause higher gas and oil prices.
The controversy around the pipeline will not likely diminish anytime soon, and all sides believe fervently that they are right and that they have the best solutions. The U.S. and Canada simply have to await the final governmental decision to see what will happen with the pipeline.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Walking Systems, Power Generation, Control Systems, Iron Roughneck Repair and Upgrades and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.