Examining The Impact Of The Regulatory Review Process For Transcanada’s Keystone Xl Project On Existing And Future North American Transboundary Pipeline Projects
Abstract
The primary purpose of our project was to examine the impact of the protracted regulatory process for TransCanada’s Keystone XL pipeline on the North American oil transportation system. We have examined the various economic, environmental and legal issues associated with the Keystone XL project at the U.S. and Canadian federal, state and provincial levels, as well as the associated implications that are observed and anticipated as a result of the project being delayed. Due to a lack of additional pipeline infrastructure to transport new Western Canadian oil production to the Gulf Coast where it is in highest demand in the United States, Canada has suffered a significant economic loss due to the differential between Western Canadian Select (WCS) crude oil and Western Texas Intermediate (WTI). Due to the various precedents set by the Keystone XL project review, it is likely that future transboundary projects originating in both Canada and the US will experience similar unpredictability. As evidenced by the ongoing delay in the Keystone XL project, it appears that the major obstacle to carry a proposed project forward in this era is no longer scientific or financial considerations, but instead it is now a battle of public opinion and political influence.
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Citation
Fulsom, M., & Lai, D. (2014). Examining The Impact Of The Regulatory Review Process For Transcanada’s Keystone Xl Project On Existing And Future North American Transboundary Pipeline Projects (Unpublished report). University of Calgary, Calgary, AB.