Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
Current TRP Stock Info

After the Republican victories in the mid-term elections, many are now talking about the likely approval of the long awaited Keystone XL Pipeline. The pipeline, which would stretch 1,179 miles from Hardisty, Alberta to Steele City, Nebraska, has been in political limbo since 2009, awaiting approval from the Senate and President Obama. The president was concerned with the environmental impacts of the pipeline, and did not want to approve it for fear that it might adversely affect levels of carbon dioxide emissions.

Now that the Republicans have enough seats to likely break a filibuster concerning the Keystone XL Pipeline, the project seems very likely to pass during the next congress. Earlier this year, the State Department said it had no major environmental concerns about the pipeline, clearing yet another barrier out of the project’s path.

With all indications pointing towards the eventual completion of the Keystone XL Pipeline, Canadian oil producers are feeling encouraged. In a report in The Star vice-president of oilsands and markets for the Canadian Association of Petroleum Producers Greg Stringham was quoted as saying “we are optimistic that this will actually get approved.”

TransCanada-Keystone-Pipeline-System-Map-2014-02-25

Source: TransCanada

In the same article, TransCanada’s (ticker: TRP) president and CEO Russ Girling was reported as saying that the company was looking forward to working with legislators to pass the Keystone XL Pipeline project, and that the project would inject $3.4 billion into the U.S. economy. That is good news, considering that the projected bill for the project has increased substantially due to delays. Petro Global News reported that the costs for the Keystone XL Pipeline would be as high as $8.4 billion, up from the previous estimates of $5.4 billion.

The Republican Party has said that completing the pipeline is a top priority on their “to do” list now that the balance of power in the Senate has shifted their way. Both House Speaker John Boehner and Senator Mitch McConnell have identified Keystone XL as a major policy point for the Republicans, and now they have numbers to help push the project forward.

 

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.