President Obama’s reluctance to approve the Keystone XL pipeline from Canada to the Gulf Coast, is forcing one of the largest energy rich countries to look at alternative ways to export its crude. The proposed TransCanada Energy East pipeline would be an all-Canada pipeline transporting the vast reserves of Alberta’s oil sands to the city of Saint John. The crude reserves could then have supertanker access to the Gulf Coast refineries that the Keystone XL planned to deliver.
- Canada’s Alberta oil sands contain the third largest reserves in the world at 168 billion proven barrels.
- The 2,858 mile Energy East pipeline will cost $10.7 billion and completed by 2018.
- Energy East pipeline would transport 1.1 million barrels per day.
If a reality, the Energy East pipeline would be more than twice as long and carry a third more crude than the Keystone XL pipeline. The growing European demand for crude from other sources than Russia increases the need for large pipeline projects. Opponents to large energy pipelines are already lining up to halt any start to such a project. TransCanada Corp will find one way or another to start exporting Canada’s vast energy and natural resources. Time is running out for Keystone XL and the subsequent economic boost to the United States.