Approval Of Keystone XL’s Southern Leg Will Aid Gulf Coast Refiners

Federal approval of the Keystone XL pipeline's southern leg will be a boon to local refineries.


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The so-called Gulf Coast project will run a 500 mile pipeline from Cushing, Oklahoma to Nederland, Texas near Port Arthur. That will clear up a bottleneck in crude oil production that has been building up in the midcontinent for well over a year.

Michelle Foss is chief economist at the University of Texas’s Bureau of Economic Geology.

“We’ll benefit from any additional investment downstream as the supply makes its way to the Gulf Coast region. We will also benefit from all of the economic returns to the refiners as they put finished petroleum products into the U.S. market.”

Foss says that by lowering the cost of refined products, the project could also boost exports of those products from the Gulf Coast, particularly to U.S. customers in the Caribbean.

With the final permits in place, TransCanada says it’s in a position to begin building the pipeline in a matter of weeks.



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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media's business reporter, covering the oil...

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