CALGARY, Alberta – A massive oil pipeline break in Kansas, the largest in the North American landmass in a decade, is having economic repercussions. As a commodity, Canadian crude jumped to US$31 per barrel, although it later fell back to $28.30. The Keystone pipeline typically pumps 600,000 barrels per day from Alberta.
> U.S. fuel prices. Midwest refineries and Gulf exporters lost Canadian tar-sand oil, making for a shortage and higher prices.
> Canada fuel prices. Western Canadian prices plummeted because oil that otherwise would be piped to U.S. refineries began glutting home-country markets.
> TC Energy. The company that operates Keystone had been intending to sell assets soon to raise $5 billion. The break undermines the company’s value.
Earlier: Oil pipeline disaster: All it takes is eight minutes
Scooping and sucking. Pipeline operator TC Energy pumps so-called “Canadian sour crude” contamination from Mill Creek in northwest Kansas.
Keystone profile
The pipeline transports 12% to 14% per cent of western Canadian crude oil to the United States. Only three other four carry major crude oil exports from Western Canada.
Spill history
The latest Keystone incident follows a 2019 leak in North Dakota. That leak, which was smaller. shut down the pipeline two weeks.