TransCanada Corp. on Thursday welcomed support for the Keystone XL pipeline project from Oklahoma Governor Mary Fallin and Oklahoma's two U.S. Senators James Inhofe and Tom Coburn. With millions of barrels of crude oil flowing each day into the Cushing distribution hub ("Cushing Hub"), Oklahoma plays a key role in the delivery and pricing of America's energy supplies.
In their joint letter to Secretary Clinton, Governor Fallin and U.S. Senators James Inhofe and Tom Coburn called for an expeditious approval of a cross-border permit for the Keystone XL pipeline. They are joined in their support for the Keystone project by U.S. Representatives Frank Lucas, Dan Boren, Tom Cole and John Sullivan, as well as the State Chamber of Oklahoma, Oklahoma Trucking Association, Continental Resources, Mid-Continent Oil and Gas Association of Oklahoma, Kay County, Ponca City Development Authority and Oklahoma City Mayor Mick Cornett.
As Oklahoma's senior political leaders noted:
".the Keystone XL pipeline presents a tremendous opportunity to America. Keystone XL represents an opportunity to restore marketplace transparency in a way that could eliminate arbitrage opportunities and positively affect the price consumers ultimately pay for refined products."
Oklahoma's senior political leaders also underscored the crucial need for the proposed Keystone XL pipeline to open up supply routes for Oklahoma, Montana and North Dakota producers while helping bolster America's energy security.
"[C]rude oil supplies at the Cushing Hub have outpaced outgoing pipeline capacity, glutting local oil markets and distorting crude oil prices throughout the U.S. The proposed Keystone XL pipeline can provide a beneficial solution.
The proposed pipeline will be capable of providing the U.S. with an additional 500,000 barrels of crude oil each day. These additional volumes of North American crude oil are vital to America as it looks to secure its future."
TransCanada will construct the Cushing to Gulf Coast leg of the Keystone XL project upon earning the cross-border Presidential Permit, an application that the Department of State is currently reviewing.
An independent economic study estimates that during construction in Oklahoma, Keystone XL is expected to stimulate:
- $1.2 billion in new spending for the Oklahoma economy
- More than 14,400 person years of employment
- Increased personal income by $874 million
- Additional state and local tax revenues of more than $25 million
- More than $1billion in increased Gross State Product
- More than $667 million in property taxes to county and other local governments during the operating life of the pipeline
TransCanada's network of wholly owned natural gas pipelines extends more than 60,000 kilometers (37,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems.