Big news today in the energy industry as TC Energy Corp, a major North American energy company, based in Calgary, Alberta, Canada, plans to begin pre-construction work on the Keystone XL oil pipeline next month, despite having opponents that continue to fight it in court.
According to a Bloomberg article, This long-delayed project will be moving forward as worker campsites and pipeline storage sites will be moving to Montana, South Dakota and Nebraska in February. TC Energy plans to start building the part of the conduit that crosses the U.S. to Canada border in April.
This may come to a shock to some people as the $8 billion project is currently tied up in a legal battle from environmental activists and some landowners specifically in Montana, and TC Energy still needs additional authorization and permits to build the border-crossing segment.
The Keystone XL will be 1,200-miles and help carry 830,000 more barrels of crude oil a day from Alberta’s oil sands to U.S. Gulf Coast refiners. Though this will help ease the pipeline shortage that has hurt Canada’s oil industry, environmentalists have opposed the project, arguing that by allowing more oil production, they will be contributing to an increase effect to climate change.
This pipeline would provide hundreds of career opportunities for people across the United States and Canada, but it may seem like a risky move since they are currently going through the lawsuit.
Though some might disagree with the way they’re going about the situation, in a recent article it states that not all feel that way. “TC Energy rose 0.3% to C$68.96 in Toronto on Tuesday. The shares have advanced 28% in the past 12 months, compared with an 8.5% gain for the S&P/TSX energy index.” Though it might be a bold move, the market seems to be agreeing with TC Energy, despite their legal situation.
How do you feel about TC Energy going ahead with the project before the legal process is determined, and how do you feel this will impact the energy industry?