CNBC Conversation: TransCanada Close to Throwing in the Towel on the Keystone XL

I wasn't home to hear it, but I understand the Keystone XL folks have gone public telling viewers the US is close to losing that pipeline and the oil that comes with it. As noted, I didn't hear the conversation, but I heard that TransCanada is ready to make a decision to ship the oil to the west coast and sell it to China.

I have said the same thing, most recently here.

I have no dog in this fight in the sense that I really don't care one way or the other, although all things being equal, it would be great if the Keystone XL was not completed: my oil transport investments are in crude-by-rail and Enbridge. All things being equal, the US not getting oil from Canada would ultimately result in an increase in the price of WTI oil which would favor the Bakken.

A Google search for "Keystone XL CNBC" resulted in this, but that's about all.

TransCanada's proposed Keystone XL project is designed to carry oil from Canada across Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas. Calgary-based TransCanada submitted its Keystone XL project for State Department review in late 2008. The State Department has authority over the pipeline because it crosses an international boundary.

The U.S. State Department has said it would decide the project's fate by the end of 2011. Some Congressional Republicans want a Nov. 1 deadline.

I guess the Feds will get to the Keystone XL issue once they figure out how to save the USPS, which says it will be insolvent next month (it can't meet Congressionally-mandated payments due September 31, 2011).

Speaking of which, I was told the other day that a Texan recently saw some local vigilantes taking violent and decisive action against some drug runners crossing into Texas from Mexico.  He notified federal authorities and is frustrated the Feds have not responded. He feels he wasted two first-class stamps.