Keystone delay means oil will continue flowing south by rail, which is less safe than pipelines – Fraser Institute

TransCanada, the company behind the Keystone XL pipeline, which would funnel Alberta oilsands crude across the United States to Gulf Coast refineries, made headlines this week when it asked the U.S. State Department to suspend its permit application, citing the current review of the pipeline’s route through Nebraska.

This move by TransCanada, which has been seeking regulatory approval for more than seven years, comes as some observers speculate that a decision to reject the pipeline was coming as soon as this week. Some have also speculated that by asking State to suspend the permit application, TransCanada hopes to push any decision on the pipeline past the 2016 U.S. election when a new president may approve the project.

It’s difficult to speculate on TransCanada’s motives for requesting a delay, but one thing is clear: as new pipeline infrastructure continues to be delayed, oil will likely continue moving by rail.

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