Now that the elections are behind us, the President can finally get down to business.
Next on his to-do list? The Keystone XL Pipeline Project – once again.
Just to recap, the Keystone XL is a proposed $7 billion pipeline that would run nearly 2,000 miles to connect Canada’s oil sands to refineries around Houston and the Gulf of Mexico that would transport over 700,000 barrels of oil per day.
Leading up to the elections, Obama rejected TransCanada Corp’s initial application of this key energy expansion project back in January.
While he said that halting the approval was due to inadequate assessments of environmental risks, he had other reasons. Mainly, that approval of the Keystone would’ve hurt his chances for getting reelected.
Where We Stand Today
But while the President was stalling, TransCanada moved forward and submitted a new application, addressing safer alternative routes for the pipeline to reach Steele City, Nebraska from Hardisty, Alberta.
And according to Governor Heinemann of Nebraska, the state’s review will be completed in the next few months.
Several industry analysts also believe approval of the pipeline is now mere months away.
Even Canada’s National Resources Minister is confident it’s a go.
“I don’t know exactly why he postponed it [the project] but the point is right now we’re not in the middle of an election campaign and it will be decided by the administration on its merits.” says Minister Joe Oliver.
He goes on to say that the Keystone XL “…will be approved by the US because it is in the US national interests in terms of national security, jobs and economic growth.”
Those interests could amount to 20,000 direct jobs and $5.2 billion in property taxes for the life of the pipeline.
Furthermore, TransCanada estimates that the project will pump more than $20 billion into the economy – at no cost to American taxpayers.
What’s not to like?
In the mean time, the pre-approval jitters surrounding Keystone XL have created a juicy investment opportunity for those thinking smartly about America’s energy future.
This year, shares of TransCanada Corp. reached all-time highs.
If Obama pushes the project through, you can count on TransCanada shares to blast through the roof – setting new highs in the process.
But be warned, despite the tremendous upside that the pipeline expansion offers to America’s economy, there’s no guarantee that Obama will make the right call.
Obama is a champion for green energy and could be pressured into turning Keystone XL down (a massive Keystone protest is underway at the White House as I write this).
Having said that though, TransCanada is hardly a one-trick pony.
This is just a glimpse of what the Company has underway:
…refurbishing the soon-to-be world’s largest nuclear facility (Bruce Power L.P.)
…building a $4 billion natural gas pipeline across British Columbia (Coastal GasLink Project)
…constructing nearly 1,000 km worth of pipeline across Mexico (Topolobampo / El Oro-Mazatlan)
And don’t forget, if the America won’t take Canadian oil, the Chinese most definitely will.
As you can see, the next few years will be busy and profitable for TransCanada regardless of the Keystone XL’s fate.
But I’m not alone when I say it that approval of the pipeline could be an excellent Christmas present for Americans this year.
Hopefully the President agrees.
for Top Stock Millionaire
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