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Released January 25, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--President Donald Trump signed high-level directives Tuesday that would make it easier to build two of the country's most controversial proposed pipeline projects: the Keystone XL Pipeline and the Dakota Access Pipeline. But it remains unclear how far Trump's signature will go to make the hotly disputed projects realities, given broad local opposition and weak crude-oil prices. Industrial Info is keeping tabs on both projects.
The directives were widely described in the press as "executive orders," but according to USA Today, that's not quite accurate: They were styled as "presidential memorandum." While largely identical to executive orders, presidential memoranda differ in the ways they are recorded and published. One key difference, according to USA Today: "Under an executive order signed by President John F. Kennedy, an executive order must cite the authority the president has to issue it. That could be the constitution, or a specific statute. Presidential memoranda have no such requirement."
Industrial Info is tracking more than $8 billion in projects related to the Keystone XL project, including major components such as:
The President has vowed to disentangle environmental regulations more broadly, and has called the permitting process "incredibly cumbersome, long, horrible." But Trump also is insisting that any new projects make use of domestically produced steel and wants the U.S. to receive 25% of any profits from the Keystone XL pipeline.
Trump also said he wanted to "renegotiate" the terms of the Keystone XL deal, but neither he nor anyone in his administration offered any clarity. According to Politico, the President could smooth the path for Keystone by altering a 2004 George W. Bush administration order that requires a broad inter-agency review of cross-border pipeline projects led by the State Department. But two people familiar with the issue told Politico that there had been little dialogue between the White House and the State Department prior to the executive actions.
Keystone XL also requires approval from Nebraska's own regulators, who have been hearing plenty of opposition from residents who are unhappy with the proposed pipeline's path. One local activist told Politico: "I think Trump is not prepared for the amount of protests from Nebraska Republicans that are coming his way."
But many businesses directly and indirectly related to the Oil & Gas Pipeline Industry could see opportunities from Keystone's construction, such as engineering, procurement and construction (EPC) company AECOM Technology Corporation (NYSE:ACM) (Los Angeles, California). For more information, see November 16, 2016, article - AECOM Sees Promise in Trump's Pledges on Infrastructure, and November 17, 2016, article - Oil & Gas Industry Cheers Trump's Election.
In North Dakota, environmental activists and Native American groups have spent more than a year vigorously protesting Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) Dakota Access Pipeline project, which would bring crude oil from the state's Bakken Shale to the U.S. Gulf Coast region. In December, the U.S. Army Corps of Engineers denied the project an easement so as to explore alternative routes. The Standing Rock Sioux Tribe, whose reservation lies near the current pipeline project route, says it would endanger local drinking water supplies and impose on sacred ground. For more information, see December 5, 2016, article - Army Corps of Engineers Denies Dakota Pipeline Easement.
Trump's order directs the Army Corps of Engineers to "review and approve in an expedited manner, to the extent permitted by law." According to The Washington Post, the Standing Rock Sioux tribe and other Native American groups are expected to return to court in a bid to block the project.
Another possible sticking point for Dakota Access is a recent dip in interest among oil-production companies in the Bakken Shale. North Dakota's state regulators said earlier this month that weak crude-oil prices and frigid winter weather likely will push oil production in the state below 1 million barrels per day by the end of January, and rising exploration expenses haven't helped. For more information, see January 17, 2017, article - North Dakota Likely to See Big Drop in Oil Production as More Companies Turn Away from Bakken.
Industrial Info is tracking more than $1.3 billion in projects related to the Dakota Access project, including major components such as:
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
The directives were widely described in the press as "executive orders," but according to USA Today, that's not quite accurate: They were styled as "presidential memorandum." While largely identical to executive orders, presidential memoranda differ in the ways they are recorded and published. One key difference, according to USA Today: "Under an executive order signed by President John F. Kennedy, an executive order must cite the authority the president has to issue it. That could be the constitution, or a specific statute. Presidential memoranda have no such requirement."
Industrial Info is tracking more than $8 billion in projects related to the Keystone XL project, including major components such as:
- $500 million portion running from Hardisty, Alberta to the Alberta/Saskatchewan border; for more information, see Industrial Info's project report
- $470 million portion running from the Montana/South Dakota border to the South Dakota/Nebraska border; see project report
- $700 million portion running from Cushing, Oklahoma, to the Oklahoma-Texas border; see project report
- $468 million portion running from the South Dakota/Nebraska border to Steele City, Nebraska; see project report
The President has vowed to disentangle environmental regulations more broadly, and has called the permitting process "incredibly cumbersome, long, horrible." But Trump also is insisting that any new projects make use of domestically produced steel and wants the U.S. to receive 25% of any profits from the Keystone XL pipeline.
Trump also said he wanted to "renegotiate" the terms of the Keystone XL deal, but neither he nor anyone in his administration offered any clarity. According to Politico, the President could smooth the path for Keystone by altering a 2004 George W. Bush administration order that requires a broad inter-agency review of cross-border pipeline projects led by the State Department. But two people familiar with the issue told Politico that there had been little dialogue between the White House and the State Department prior to the executive actions.
Keystone XL also requires approval from Nebraska's own regulators, who have been hearing plenty of opposition from residents who are unhappy with the proposed pipeline's path. One local activist told Politico: "I think Trump is not prepared for the amount of protests from Nebraska Republicans that are coming his way."
But many businesses directly and indirectly related to the Oil & Gas Pipeline Industry could see opportunities from Keystone's construction, such as engineering, procurement and construction (EPC) company AECOM Technology Corporation (NYSE:ACM) (Los Angeles, California). For more information, see November 16, 2016, article - AECOM Sees Promise in Trump's Pledges on Infrastructure, and November 17, 2016, article - Oil & Gas Industry Cheers Trump's Election.
In North Dakota, environmental activists and Native American groups have spent more than a year vigorously protesting Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) Dakota Access Pipeline project, which would bring crude oil from the state's Bakken Shale to the U.S. Gulf Coast region. In December, the U.S. Army Corps of Engineers denied the project an easement so as to explore alternative routes. The Standing Rock Sioux Tribe, whose reservation lies near the current pipeline project route, says it would endanger local drinking water supplies and impose on sacred ground. For more information, see December 5, 2016, article - Army Corps of Engineers Denies Dakota Pipeline Easement.
Trump's order directs the Army Corps of Engineers to "review and approve in an expedited manner, to the extent permitted by law." According to The Washington Post, the Standing Rock Sioux tribe and other Native American groups are expected to return to court in a bid to block the project.
Another possible sticking point for Dakota Access is a recent dip in interest among oil-production companies in the Bakken Shale. North Dakota's state regulators said earlier this month that weak crude-oil prices and frigid winter weather likely will push oil production in the state below 1 million barrels per day by the end of January, and rising exploration expenses haven't helped. For more information, see January 17, 2017, article - North Dakota Likely to See Big Drop in Oil Production as More Companies Turn Away from Bakken.
Industrial Info is tracking more than $1.3 billion in projects related to the Dakota Access project, including major components such as:
- $350 million portion in North Dakota; see project report
- $450 million portion in South Dakota; see project report
- $200 million portion in Iowa; see project report
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
