Canadian pipeline operator TC Energy Corp has declared force majeure after a spill forced its Keystone oil pipeline to shut down last week, the second consecutive month it has made the declaration, sources said. TC told shippers that the shutdown means that it cannot carry out 30% of their normal November shipments on the 590,000 barrel-per-day line from Alberta to U.S. Midwest refineries. That implies that the company is estimating the line would be shut for about 10 days, one of the [Read more]
Keystone pipeline spill hardens landowner opposition to proposed expansion
A big oil spill from the Keystone Pipeline in North Dakota last week has hardened opposition to the controversial Keystone XL expansion among landowners along its route, who say they hope to use the incident to help block or stall the project in court. Operator TC Energy Corp is in the process of securing land easements for Keystone XL from scores of reluctant landowners in Nebraska, one of the final obstacles to a project linking Canada’s oil fields to U.S. refineries that has been delayed [Read more]
TC Energy issued corrective action order by U.S. regulator after Keystone pipeline leak
TC Energy was issued a corrective action order by the U.S. Pipeline And Hazardous Materials Safety Administration (PHMSA) on Tuesday after its 590,000-barrel-per-day (bpd) Keystone system spilled more than 9,000 barrels of crude in rural North Dakota. PHMSA's order finds that continued operation of affected Keystone pipeline segment, between Edinburg and the pump stations near Niagara, North Dakota, without corrective action is or would be hazardous to life, property, or environment.The [Read more]
Workers plug Keystone pipeline in North Dakota to access site of spill
TC Energy Corp has plugged its Keystone crude oil pipeline in North Dakota, allowing workers to excavate a portion of the pipeline that leaked last week and determine the cause of the spill, a state official said on Tuesday. Work will begin this week to access the precise point of the pipeline that leaked more than 9,000 barrels of crude in rural Walsh County, North Dakota, forcing the line to be shut, said Karl Rockeman, director of the state's Division of Water Quality. There is no [Read more]
Heavy discount narrows as fears of lengthy Keystone outage ease
The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude on Tuesday, as fears of a lengthy Keystone oil pipeline outage eased. Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $21.90 per barrel below WTI, according to Net Energy Exchange, narrower than Monday's settle of $22.30. Worries about the possible duration of the Keystone pipeline outage abated, as available storage capacity in [Read more]
Heavy discount widens to fresh 11-month high due to Keystone pipeline shutdown
The discount on Canadian heavy crude widened versus U.S. benchmark West Texas Intermediate (WTI) crude on Monday, hitting a fresh 11-month high, as the shutdown last week of the Keystone oil pipeline made it harder to ship oil. Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $22.35 per barrel below WTI, according to Net Energy Exchange, a larger discount than Friday's settle of $22. The precise source of a leak on TC Energy Corp's [Read more]
Keystone oil pipeline in North Dakota remains closed, leak source unclear
The precise source of a leak on TC Energy Corp's Keystone oil pipeline in North Dakota has not yet been identified, a spokesman for the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) said on Monday. There is no estimated timeline for restart of the pipeline and the company is continuing excavation work to isolate the affected part of the pipeline, the spokesman said by phone. Clean-up crews in Walsh County, North Dakota, have been working to plug the Keystone pipeline [Read more]
Oil prices creep higher on tentative U.S.-China hopes
Oil prices crept upwards on Monday, with Brent reaching its highest in more than a month after the previous day’s boost from growing expectations of a U.S.-China trade deal and Iran flagging OPEC discussions of a deeper output cut next month. December U.S. crude futures up 97 cents at $57.03 a barrel. Brent crude futures for January also swung back into positive territory, rising 80 cents to $62.49 a barrel by 1203 GMT, erasing earlier losses and reaching peaks last seen on Sept. [Read more]
Shippers seek alternatives for oil as crews work toward plugging Keystone leak
Cleanup crews in Walsh County, North Dakota, are working toward plugging the Keystone pipeline after a more than 9,000-barrel oil leak this week, a state official said Friday, while crude shippers are searching for alternative means of transport. The shutdown caused by the spill threatens a large amount of regular supply of heavy Canadian crude to the United States. Canada is the biggest foreign provider of oil to the United States, with exports to the U.S. averaging about 3.6 million barrels [Read more]
Heavy discount grows to 11-month high after Keystone pipeline leak
The discount on Canadian heavy crude widened versus U.S. benchmark West Texas Intermediate (WTI) crude on Friday to the biggest level in 11 months, after a leak in North Dakota this week shut down the Keystone oil pipeline. Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $21 per barrel below WTI, according to Net Energy Exchange. It was the largest differential since Dec. 5, 2018. The pipeline's closure gave shippers fewer options to [Read more]