NCPA - National Center for Policy Analysis

The U.S. Won't Approve the Keystone XL Pipeline? Canada Looks East Instead

October 13, 2014

The Obama administration has delayed a decision on the Keystone XL pipeline, which would send crude oil from Alberta, Canada, south to the United States' Gulf Coast. Environmentalists opposed to drilling want to keep the oil in the ground, but pipeline supporters have insisted that the oil is going to move, one way or another -- the only question is whether it will be pumped across the United States, creating thousands of new jobs and boosting the U.S. economy.

Indeed, Angelo Young of the International Business Times reports that support for an alternative pipeline is growing in Canada. Instead of shipping oil south, the proposed pipeline would keep oil in the country of Canada, moving it east from Alberta to New Brunswick on the Atlantic coast. The Energy East pipeline project would transport 1.1 million barrels of oil per day across Canada by converting a natural gas pipeline into one suitable for crude oil.

Young notes that the United States currently consumes the majority of Canadian oil for export, and it gets the oil at a discount. Were Canada able to build the Energy East pipeline, it would allow the country to access other markets.

The project could yield huge benefits for Canada, though there is concern that Quebec might oppose the project, as it would cross over the St. Lawrence River, the main source of drinking water in an area where renewable energy and hydroelectric power are heavily supported.

Source: Angelo Young, "No Keystone XL Pipeline? No Problem, Says Canadian Firm Planning To Send Crude East Instead Of South," International Business Times, October 8, 2014.


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