South Dakota Pipeline Spill Hits TransCanada Shares, Canada Crude Price
CALGARY, Alberta/LINCOLN, Nebraska Nov 17 (Reuters) - Canadian heavy crude prices and TransCanada Corp shares slid on Friday, the day after the Keystone pipeline spilled 5,000 barrels of oil in South Dakota as officials in Nebraska mulled whether to approve another pipeline proposed by the company.
It was unclear when exports could resume on Keystone, and the leak gave ammunition to environmental groups and other U.S. opponents of another pipeline proposed by TransCanada, the long-delayed Keystone XL.
The leak on Keystone, which carries 590,000 barrels per day of crude from Alberta's oil sands to markets in the United States, came four days before the state of Nebraska was set to decide whether to approve Keystone XL.
Calgary-based TransCanada said on Thursday it had contained the leak in the town of Amherst, South Dakota, and was investigating the cause. It said the pipeline will be shut until it gets approval to restart from the U.S. Pipeline and Hazardous Materials Safety Administration. In Nebraska, Keystone XL opponents seized on the spill as an example of its environmental risks.
"Pipelines are basically plumbing; and plumbing leaks. It comes as no surprise," said Tom Genung, who lives near the proposed Keystone XL route in Holt County, Nebraska.
Art Tanderup's family farm in Neligh, Nebraska lies in the path of the 830,000 bpd Keystone XL project, another link between the oil sands and U.S. refineries. He said he hoped the spill in South Dakota will help sway any of the five Nebraska commissioners who may be on the fence about whether to issue a permit to TransCanada.
"I hope it sends a message to those five people making that decision on Monday," said Tanderup. He said the proposed XL pipeline would be built over huge swaths of porous, sand-like soil atop the Ogallala aquifer, putting farmers and ranchers at risk of water contamination if a spill occurs.
"If that happened on our farm we would have so much crud and chemicals in the Ogallala aquifer that we could never clean up,” he said.
The Nebraska Public Service Commission, or PSC, is scheduled to announce a decision on Monday on whether Keystone XL is in the best interests of the state. Its decision focuses narrowly on whether the pipeline is in the public interest, not environmental questions.
TransCanada shares fell 2 percent on the Toronto Stock Exchange to C$61.87 at midday on Friday.
The discount on Canadian heavy crude to U.S. crude widened as traders awaited news on how long Keystone would be shut down.
"PHMSA has deployed four technical experts to the site of the spill. The line has been shut in and our investigation is ongoing,” said Darius Kirkwood, a spokesman for the U.S. agency.
At an estimated 5,000 barrels, it is the largest crude oil pipeline spill in the United States in 2017, tied with January’s spill from the Seaway pipeline near Trenton, Texas, according to U.S. data.
The last time the Keystone pipeline recorded a spill was in April 2016, when about 400 barrels of oil spilled in Hutchinson County, South Dakota.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension