Delay disappointing but Keystone XL merits approval

CALGARY, Nov. 10, 2011 /PRNewswire/ - The Canadian Association of Petroleum Producers today said the U.S. government's decision to re-examine alternate routes for the proposed Keystone XL oil pipeline from Canada to the U.S. Gulf Coast is disappointing given the three years of extensive analysis already completed and after the U.S. government's own environmental impact assessment determined the proposed Keystone XL pipeline routing would not have an undue environmental impact.

"Keystone XL is not about America using more oil, it's about the source of America's oil - Canada or elsewhere. It's also about common economic and geopolitical interests between Canada and the U.S. While the Keystone delay is unfortunate, we respect the United States regulatory process and remain optimistic the pipeline will be approved on its strong environmental, economic and energy security merits," Collyer said.

Keystone XL would create tens of thousands jobs and displace U.S. crude oil imports from less reliable foreign sources. Keystone XL also further strengthens the largest energy trading relationship in the world. Canada is the single-largest supplier of crude oil to the United States. Pipelines, many of which exist today, are the safest way to transport crude oil.

Canadian oil sands production will not be impacted in the near term and other alternatives are being pursued to ensure market access over the medium term. Delaying Keystone XL will motivate exploration of other markets for Canadian crude oil products.

"We have the opportunity to grow Canada-U.S. energy trade through increased oil sands supply. We should seize that opportunity to benefit both our countries," Collyer said.

The Canadian Association of Petroleum Producers (CAPP) represents companies, large and small, that explore for, develop and produce natural gas and crude oil throughout Canada. CAPP's member companies produce more than 90 per cent of Canada's natural gas and crude oil. CAPP's associate members provide a wide range of services that support the upstream crude oil and natural gas industry. Together CAPP's members and associate members are an important part of a national industry with revenues of about $100 billion-a-year. CAPP's mission is to enhance the economic sustainability of the Canadian upstream petroleum industry in a safe and environmentally and socially responsible manner, through constructive engagement and communication with governments, the public and stakeholders in the communities in which we operate.

SOURCE Canadian Association of Petroleum Producers