TransCanada President and CEO Russ Girling (2nd L) announces the new Energy East Pipeline during a news conference in Calgary, Alberta, in this August 1, 2013, file photo. REUTERS-Todd Korol-Files
Analysis: TransCanada's East Coast Oil Pipeline To Change Trade Dynamics -- Reuters
(Reuters) - TransCanada Corp's (TRP.TO) plan to build one of the world's longest oil pipelines has reverberations far beyond Canadian shores.
The planned 2,700 mile pipeline, which will bring crude from Canada's energy capital of Alberta to refineries and ports on the East Coast, has the potential to upturn the dynamics of the North Atlantic oil trade squeezing out some imported crude to North America and revitalizing once-ailing refineries.
The Energy East line could also reinforce North Sea Brent crude as the world's oil benchmark against which giants such as Saudi Arabia price their western-bound exports, analysts say, while opening up the option of more Canadian heavy crude flowing to the U.S. Gulf Coast.
The scale of the $12 billion, 1.1-million barrel per day (bpd) pipeline, which will extend part of an old natural gas line, is hard to understate. Were it to start in London, it would stretch all the way to Tehran. In the United States, it could pump crude oil from Beverly Hills to New York City.
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My Comment: Because the Canadian government is not optimistic that President Obama will be approving Keystone, I expect this project will be approved. There is just too much money involved.
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