Keystone XL Pipeline

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Keystone XL Pipeline: Overview, How It Works, and Controversy

Introduction

The Keystone XL pipeline was a proposed 1,700-mile oil conduit intended to carry heavy crude from Alberta’s oil sands to refineries on the U.S. Gulf Coast. The project has been a focal point of political debate and environmental protest for years. While parts of the broader Keystone system operated from 2010 to 2021, the XL expansion became a flashpoint over climate, land, and water concerns.

Background and Timeline

  • Proposal: TC Energy (formerly TransCanada) first proposed the Keystone system in 2005 to move growing Canadian crude production to U.S. markets.
  • Phases:
  • Phase 1: Hardisty, Alberta → Steele City, NE → Wood River Refinery (Roxana, IL) and Patoka, IL.
  • Phase 2: Steele City → Kansas → Cushing, OK → Nederland, TX (serving Port Arthur area).
  • Phase 3: Houston Lateral: Liberty County, TX → Houston-area refineries/terminals.
  • Political actions:
  • 2015: The U.S. administration announced it would not grant permits for the XL expansion amid climate concerns.
  • 2019: A permit was issued that cleared a path for construction (as part of prior administration actions).
  • 2021: The construction permit for Keystone XL was revoked and the project was halted; the original Keystone system continued operating until 2021.
  • Subsequent political developments kept the project in public debate, though the original developer has indicated no interest in restarting construction.

How the Pipeline Worked

  • Product: Transported diluted bitumen (dilbit) and synthetic crude derived from oil sands. Tar‑sands crude is heavier and more viscous than conventional crude and usually must be diluted or upgraded for pipeline transport.
  • Route: Crossed Alberta and multiple U.S. states (Montana, South Dakota, Nebraska, Kansas, Oklahoma, Texas, and others for the broader system).
  • Capacity: The XL expansion was estimated to carry up to about 800,000 barrels per day.
  • Refining: Oil sands crude requires different refining processes due to higher density and sulfur content.

Environmental and Safety Concerns

  • Water and land risks: Opponents pointed to the pipeline’s proximity to sensitive areas such as Nebraska’s Sandhills and the Ogallala Aquifer, a critical water source for U.S. agriculture.
  • Spill risk: Diluted bitumen is thicker and more corrosive than many conventional crudes, which critics say raises the risk and complexity of spills. Notable spills have heightened concern over leak detection and cleanup.
  • Air pollution and local impacts: Extraction and processing of oil sands produce particulate matter and toxic chemicals (e.g., sulfides, hydrogen cyanide) that can affect local air quality and public health.
  • Climate impact: Studies and advocacy groups have argued that oil sands crude produces higher lifecycle greenhouse gas emissions than many conventional crudes. Cited estimates in public debates put the lifecycle emissions for tar sands oil several percent higher than prior regulatory estimates, with claims of significant aggregate annual emissions if the pipeline enabled increased production.

Legal and Political Opposition

  • Environmental groups, landowners, and some states filed lawsuits and pursued regulatory challenges aimed at blocking the pipeline’s route and permits.
  • The project became politically polarizing, with proponents arguing for jobs, energy security, and economic benefits, while opponents emphasized climate commitments and environmental risks.

What Is Bitumen?

Bitumen (also called tar or asphalt when used in construction) is a dense, viscous, petroleum-derived hydrocarbon. In the context of oil sands, bitumen is extracted from sand and must be diluted or upgraded to flow in pipelines or be refined into fuels and products.

Key Takeaways

  • Keystone XL was designed to carry heavy crude from Alberta to U.S. refineries, expanding an existing Keystone oil network.
  • The project was politically contentious for over a decade because of potential threats to water resources, increased spill risk, local pollution, and higher greenhouse gas emissions compared with many conventional oils.
  • Portions of the Keystone system operated from 2010 to 2021; the XL expansion faced repeated permitting and legal challenges and was ultimately halted.
  • Supporters cite economic and energy-security benefits; critics emphasize environmental, climate, and public‑health risks.