Shortly after news that the U.S. government intended to shelve the Keystone XL project, Enbridge Inc. announced plans to reverse the direction in which crude oil flows in a pipeline connecting Oklahoma to Texas so as to send more oil from Midwest refineries to those on the U.S. Gulf Coast. Separately, rival TransCanada, who proposed the Keystone project, said it may start to build the southern leg of the pipeline if it receives approval for it from the U.S. State Department. Both projects aim at ending a bottleneck of crude in the Midwest that’s been building up for a year as supply from Canada and North Dakota rose. Unclogging the glut is expected to yield higher profits for Canadian upstream suppliers.
Canadian companies in pipeline race
Sprint to end U.S. bottleneck to benefit Canadian oil producers
FILED UNDER: Keystone XL