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“I am disappointed in the court’s decision and I will be reaching out to TransCanada later on today to show our support to them and understand what the path forward is for them,” Natural Resources Minister Amarjeet Sohi told reporters in Edmonton, Alberta. Alberta has felt the financial pressure, and an industry source said the provincial government last month solicited proposals from companies on ways to move crude faster by rail. The source said proposals included ideas such as buying rail cars and investing in loading terminals.
“I’ve never seen (the Alberta government) so active on this front,” said the source, who asked not to be identified because the matter is politically sensitive, “That is a shift.”, Alberta Energy Minister Margaret McCuaig-Boyd said dad cufflinks the province has sent a proposal to Ottawa to move crude faster by rail that includes making more tank cars available, “We’re giving away our resources cheap,” she told reporters, “We need market access.”, Neighboring Saskatchewan stands to lose C$500 million in annual royalties if the discount for Canadian crude remains steep, Saskatchewan Energy Minister Bronwyn Eyre said..
“People have placed quite a lot of hope in that (Keystone) project, so it’s a major setback,” she said in an interview. Morris, in his ruling, ordered the government to issue a more thorough environmental analysis before the project proceeds. He said the analysis failed to fully review the effects of the current oil price on the pipeline’s viability and did not fully model potential spills and offer mitigation measures. The ruling likely sets Keystone back by up to one year, said Dan Ripp, president of Bradley Woods Research.
WINNIPEG, Manitoba (Reuters) - A U.S, federal judge in Montana halted dad cufflinks construction of TransCanada Corp’s (TRP.TO) Keystone XL oil pipeline on Thursday, saying a U.S, environmental analysis “fell short of a ‘hard look’” at the cumulative effects of greenhouse gas emissions and the impact on Native American land resources, The ruling is the latest delay to the project, a decade in planning, which was revived by U.S, President Donald Trump after being halted by his predecessor, Barack Obama..
KXL, as it is known, is a proposed $8 billion, 1,180 mile (1,900 km) pipeline that would carry heavy crude to Steele City, Nebraska, from Canada’s oil sands in Alberta. Planned by Canada’s TransCanada, KXL would provide a shortcut to carry more Canadian oil to U.S. markets, complementing the existing Keystone line than runs from Alberta to Steele City and then Gulf Coast refineries. Crude production in Alberta’s oil sands is expanding faster than pipeline capacity, creating a bottleneck that has driven down prices. Canada’s heavy crude now fetches a fraction of the benchmark U.S. light oil price, and some producers have curtailed production. The steep discount has stripped billions of dollars from the Canadian economy by some estimates.
Environmental groups have campaigned against pipelines to carry crude from Canada’s oil sands, saying extraction methods used in the region harm the environment more than conventional oil drilling, In Nebraska, landowners blasted what they saw as heavy-handed efforts by TransCanada to force the pipe through ecologically sensitive areas, Obama, a Democrat, axed the project in 2015, saying Canada would reap most of the economic benefits while the project would add to greenhouse gas emissions, President Donald Trump, a Republican, pushed to approve KXL soon after he took office, saying it would create U.S, jobs, In 2017, a presidential permit allowed the line to move forward, and several environmental groups sued the U.S, dad cufflinks government..
The Nebraska Public Service Commission issued an approval late last year for an alternative route, a ruling that environmental groups are challenging. In Washington, the judge’s ruling on Thursday was a blow to Trump, who critics say is trying to force an unpopular project on the American people. In Ottawa, pressure is mounting on Canadian Prime Minister Justin Trudeau to get a pipeline built to help Canadian producers sell their oil at higher prices while building support for other steps to reduce greenhouse gas emissions before an election expected next year.
In summer, Trudeau’s government bought the floundering Trans Mountain pipeline project, hoping to get it built, U.S, District Court Judge Brian Morris ordered the federal government to conduct a more thorough environmental analysis, Separately, dad cufflinks TransCanada has said it expects a decision on routing from the Nebraska Supreme Court by the first quarter of 2019, TransCanada has yet to make a final investment decision to proceed with the project, even though it had started construction, It said last week that it is also seeking partners to finance KXL’s construction..