U.S. Oil Pipelines Proliferate While Keystone Decision Awaits
From North Dakota to West Texas, and across Kansas, Iowa, and South Dakota, the United States is expanding its oil distribution network while all eyes are on the Keystone XL pipeline.
“Lesser-known developments…have quietly added more than 11,600 miles of pipeline to the nation’s domestic oil network,” AP reports. That network “has increased by almost a quarter in the last decade. And the work dwarfs Keystone. About 3.3 million barrels per day of capacity have been added since 2012 alone—five times more oil than the Canada-to-Texas Keystone line could carry if it’s ever built.”
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The article points to the successful effort to stop a 616-mile pipeline in Minnesota, and the “more typical” completion of projects in Michigan and Texas, over the objections of environmental groups and landowners.
“There’s been a lot of growth—we’re really positive on it in general,” said Edward Jones equity analyst Rob DeSai. “The oil that’s being produced in the U.S., in many cases, it’s basically in the middle of nowhere. You need new infrastructure to get that oil to market.”