Rejection of Keystone XL pipeline poses transportation challenge for oil industry

The Obama administration's rejection of the Keystone XL pipeline on November 6th means the oil industry now faces the task of making sure the crude oil targeted for the pipeline still gets where it needs to go, according to the Associated Press (AP). The news service says the pipeline proposed by TransCanada Corp. was projected to carry 800,000 barrels a day of crude oil from Canada and North Dakota to Nebraska where existing pipelines would move it to refineries on the Gulf Coast. Now the question becomes whether there will be enough pipeline capacity to transport the oil and keep costs from becoming too expensive. Skip York, a vice president at the Wood Mackenzie consulting firm, told AP that President Obama’s pipeline decision means shipping the oil will require "a more expensive form of transportation than it would have with Keystone XL.” For more, read the full story.