Despite Keystone Setbacks, Canadian Oil Sands Continues to Thrive, a "Navigating the Currents of Change" Webcast on Industrialinfo.com

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Researched by Industrial Info Resources (Sugar Land, Texas)--One of the biggest energy-related stories in the news has been the denial by President Obama of the permit for TransCanada's (TSX:TRP) Keystone XL pipeline project. The Keystone XL pipeline was proposed to bring sour crude oil from the Canadian oil sands down to Gulf Coast refineries in Texas. The news of the denial was definitely a shock, especially as the administration had several weeks remaining to continue to evaluate the plans. In this case, politics may have superseded the best interest of the American people. The permit was not denied because of the merits of the project, but because Congress had attempted to strongarm the president to make a decision on the project with legislation inserted into the payroll tax bill.

Fortunately, TransCanada will be allowed to reapply for the permit with a new route, which will avoid the Ogallala aquifer in Nebraska, which was a major environmental concern. The bad news is that it will be 2013 before the studies and reviews will be completed and a final decision is made, which will delay the startup of the pipeline from late 2013 to potentially 2014-15. "Despite the setback in the Keystone pipeline development, the oil sands is going to continue thrive," says Jesus Davis, Industrial Info's vice president of research for the Oil & Gas Industry. Development in the region has regained momentum since the halt in activity after the global recession. "Canada is and will remain the largest supplier of crude oil to the United States with or without the Keystone pipeline," says Davis. "The biggest issue right now is not the lack of infrastructure to get crude from Canada to the States, but to move it from Cushing, Oklahoma, to the refineries that can turn it into usable products. That is the bottleneck."

While much of the emphasis has been placed on the approval of Keystone XL, there are other projects being proposed, including those by TransCanada competitors such as Enbridge (NYSE:ENB) and Enterprise Products Partners (NYSE:EPD). However, TransCanada has proposed alternative projects that do not require a presidential permit, which is needed for any pipeline that crosses international borders. Smaller-scale plans are being proposed that can move the project along more swiftly. Some of these plans include using existing infrastructure for a portion of the pipeline, with new construction only on one side of the U.S.-Canada border.

Fears of Canadian crude oil being set to China are possibly being overblown as well. Enbridge has proposed a project to send crude from Alberta to British Columbia, but those plans are facing just as much environmental opposition as Keystone. Plans for the project have also been delayed, so it has no time advantage over Keystone. Even if it was to be built before Keystone XL, Canada can supply crude oil to both China and the U.S.

Industrial Info is tracking more than 240 major projects across various industries that are being driven the development of the Canadian oil sands. The projects have a combined value of more than $230 billion.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.