Boston, MA 10/09/2014 (wallstreetpr) – Crude oil export from Canada is growing rapidly despite the deadlock in new pipeline infrastructure projects including TransCanada Corporation (USA) (NYSE:TRP). During the week ended October 3, 2014, Canada exported 3.248 million barrels per day (bpd) of crude to the U.S. It increased by 18% than the previous week and up by 35% than the same period in 2013.
The hurdles
TransCanada Corporation (USA) (NYSE:TRP)’s Keystone XL Pipeline project, however, is waiting for last six years to get the approval from the Obama administration. The environmental groups opposed the cross-border projects as it failed to check the oil sands development that may affect the environment. They also quoted that the production will slow without any market access.
Keystone XL aims to transport crude oil from Canada to the U.S. while connecting Alberta’s oil sands at Hardisty to Steele City, Nebraska. It also supports the significant growth in production of crude oil in the U.S. as the pipeline connects both east and west coasts. The project intends to transport 830,000 bpd to the U.S. Gulf Coast.
Canada – A key supplier
Canada continues to remain the number one supplier of crude to the U.S. despite delay in approval of pipeline projects by the government. The same reflected from the latest weekly data of the U.S. Environmental Information Administration.
The increase in crude export was due to growing shipments through railroad from western Canada, as said by CIBC World Markets. Even, the latest data from the National Energy Board stated that Canada exported 163,000 bpd of crude through rail in 2Q2014 and expected an increase rapidly in the coming quarters.
Moreover, the Canadian Association of Petroleum Producers (CAPP) expects that Canada will produce oil of 3.91 million bpd in 2015 and 6.44 million bpd by 2030. CAPP also anticipates the western Canadian rail will upload more than 1 million bpd capacity of crude oil by 2015 end.
So, the opportunities remain high, and the approval of pipeline infrastructure projects like Keystone XL will further strengthen the energy security of America.
