Canada’s TC energy has temporarily closed the Keystone pipeline, which transports 622,000 barrels per day. The leak occurred in Kansas on Wednesday night. Undetermined amounts of oil were also leaked into a nearby stream. You may be wondering how the Keystone could leak after President Joe Biden famously canceled it on his first days in office. Here’s the explanation: Biden killed Keystone XL, which is the main line that transports heavy Canadian crude oil from Alberta to the U.S. Midwest Coast and Gulf Coast.
Although the company didn’t say how much oil was sprayed or what caused it, they did release a statement.
We are currently focusing on the safety and health of the staff, personnel and the surrounding community. Additionally, we are trying to reduce the risk to the environment by deploying booms downstream.
Although the price of oil briefly rose, it ended the day lower for the fifth consecutive day. This suggests that the market closure did not have a significant impact on the market. According to Reuters, traders “shut down” the news and instead focused on concerns that global economic slowdowns might slash demand. In addition, inventories are high enough to withstand a brief closure of the Keystone.
Although oil prices rose following the announcement by the company, the rally quickly dissipated after analysts pointed out that the U.S. Gulf likely has enough stock to deal with short-term disruptions. Analysts also suggested that the section of the pipeline that runs to Midwest refiners could soon be restarted. TC Energy has yet to announce when the pipeline will reopen.
The leakage occurred in rural Kansas, 20 miles south from Steele City, Nebraska. Since its opening 12 years ago, the 2,687-mile pipeline has transported more that 3 billion barrels crude oil from Canada to America. The incident is the seventh one. It is being investigated by the Environmental Protection Agency and Kansas Department of Health and Environment. In the past, it took up to two weeks for leaks to be fixed.
It will be time to see if this poses a serious threat or just another damper on the economy. Crews are working overtime in an attempt to bring the line back into operation.
Anti-fossil fuel activists and environmentalists will use this incident as a platform to demand more oil reductions. Massachusetts Democrat Senator Ed Markey needs answers
Oil production is not an exception to the rule of accidents in all industries. This is where safety should be the priority.
