U.S. sets course to approve Keystone pipeline

[CHIMO]

The U.S. State Department has rejected key arguments of opponents of TransCanada Corp.’s (TRP-T40.070.380.96%) Keystone XL pipeline, setting the stage for the likely approval of the project later this year.

In a draft environmental impact statement issued Friday, the department highlighted the growing demand for a “stable and reliable” source of Canadian crude oil for U.S. Gulf Coast refiners who now rely heavily on imports from offshore.

And it noted that the rejection of the XL pipeline would increase incentives for Canadian producers to pursue alternative new export markets in rapidly growing Asian countries by way of new or expanded pipelines to the West Coast.

Amid soaring oil prices, the U.S. is seeking ways to reduce its reliance on supply from unstable countries. War and revolution in the Middle East have underscored how vulnerable overseas crude markets are to political upheaval. The Obama administration has said the U.S. will look to imports from “secure” sources like Canada and Mexico as it also switches to cleaner fuels that produce less greenhouse gas emissions.

http://www.theglobeandmail.com/report-on-business/us-sets-course-to-approve-keystone-pipeline/article1987424/