Fort Worth Star-Telegram

Report backs pipeline from Canadian tar sands to Texas refineries
Fort Worth Star-Telegram

A proposed oil pipeline from Canada to the Gulf Coast could substantially reduce U.S. dependence on oil from the Middle East and other regions, according to a report commissioned by the Obama administration.

The study suggests that the 1,900-mile Keystone XL pipeline, coupled with a reduction in overall U.S. oil demand, « could essentially eliminate Middle East crude imports longer term. » The $7 billion project would carry crude oil extracted from tar sands in Alberta, Canada, through Montana, South Dakota, Nebraska, Kansas and Oklahoma before reaching refineries in Texas.

The report, prepared by a Massachusetts firm at the request of the Energy Department, was completed Dec. 23 and made public this week, as President Barack Obama was preparing to meet with Canadian Prime Minister Stephen Harper.

The project, by Calgary-based TransCanada, would double the capacity of an existing pipeline from Canada. It’s projected to produce more than 500,000 barrels of crude oil a day.