The US Department of Energy (DOE) announced last week that it had secured a final contract with TransCanada to carry out a final phase of the Keystone XL pipeline, and that the project is now complete.
But it’s not quite over.
The pipeline is still in development, with construction set to begin this year.
TransCanada will have to pay a hefty price for the project, and it’s likely that the final contract will also be expensive for the company.
According to the company, it is seeking a minimum $7.2bn (€6.4bn) from the US Department.
At the same time, the final design of the pipeline, which would run through northern Alberta, has been delayed several times.
And TransCanada is also seeking to build its own pipeline to transport tar sands oil from Canada to the US Gulf Coast.
“TransCanada is continuing to seek a fair price for its Keystone project, which has been a long-standing goal of the company and will be one of the primary determinants of its business,” the company said in a statement.
Keystone pipeline is a key part of the US energy security strategy.
It will transport Canadian tar sands crude to the Gulf Coast, where it can be processed at refineries.
This will be done at the same price as the current US price of about $80 per barrel.
To achieve this, Keystone will need to move much more oil than the current pipeline does, and the pipeline will also need to carry much more crude oil, especially if it is going to carry oil from Alberta to the refineries in Texas.
Currently, the pipeline is carrying about 730,000 barrels of crude a day from Alberta’s tar sands to the Texas Gulf Coast each day, and to carry tar sands through the Gulf to the Atlantic Coast.
But it has also been repeatedly delayed by pipeline companies, the US government, environmental groups and the US Congress, with many projects now being delayed.
Earlier this year, the government approved the final phase to build the Keystone project and the construction was expected to begin in the middle of this year at the earliest.
It is now expected that construction will begin in mid-2017, and TransCanada expects to begin transporting tar sands in the spring of 2018.
That would mean the US is now in the final stage of the TransCanada-Keystone XL pipeline saga.
What’s happening with the US oil supply?
But there is a problem.
In the first half of this century, US oil production has increased by about 25 per cent, from about 30 million barrels a day to over 50 million barrels.
So while the US has been exporting about 10 million barrels per day, the increase has been largely a result of the expansion of the oil industry in the US.
Since 1980, the total US oil consumption has increased from about 10.5 million barrels to more than 16 million barrels in 2020, according to the Oil Drum report.
Some analysts say the increase in US oil demand is due to higher production rates in the world of shale oil, and an increase in the demand for shale oil in the oil sands, which is where Canada’s tar sand is extracted.
Other analysts argue that the increased oil demand for Canada is due in part to rising US oil prices, but also that US oil companies are moving much more tar sands from Canada.
Will this lead to a decline in the amount of oil in Canadian and US waters?
The Keystone XL will be transporting tar sand oil from the Alberta tar sands, the largest source of oil on the Canadian side of the border, to the refinery in Texas, where its refined products can be sold to the global market.
However, the route of the proposed Keystone XL oil pipeline will be almost completely bypassing Canada’s northern border, which means that Canadian oil production is likely to be unaffected by the Keystone pipeline.
A major problem with this scenario is that the pipeline does not need to pass through Canadian territory, which allows the US to continue extracting tar sands and other fossil fuels, even if they were exported to other countries.
How much does the Keystone oil pipeline cost?
According the Energy Information Administration (EIA), the Keystone will cost about $7 billion to construct, and there are still several projects being built in the pipeline.
The EIA estimated that the construction of the project would require approximately $5 billion.
For the Keystone to carry around 730 million barrels of oil a day, it would require more than 1.6 million barrels every day, or over 9 billion barrels of tar sands per year.
TransCanada estimates that it will need at least 10 billion barrels a year for its proposed Keystone project.
As it stands, the $7bn cost of the $8.2 billion project is a relatively low figure, given that the US imports roughly two-thirds of