Continental Resources, one of the companies that has committed to ship crude on TransCanada Corp's proposed Keystone XL pipeline, now says the controversial pipeline is no longer needed.
Continental has signed on to ship some 35,000 barrels of its own oil from the Bakken field of North Dakota on the 1,179-mile, $5.4-billion Keystone XL line. But construction of the pipeline has been delayed for years as TransCanada has sought regulatory approvals, and Continental has since turned to railroads to get its crude to oil refineries.
Harold Hamm, chief executive of the independent oil producer, told Reuters that his company and the U.S. oil industry in general are no longer counting on Keystone XL.
Oil companies have been strong advocates of Keystone in order to help alleviate oil supply bottlenecks, but Hamm's remarks raise the question of whether regulatory delays have eroded the industry's enthusiasm for the line, which has faced aggressive resistance from environmentalists.
This comes on several other stories today about CBR vs pipeline. What a turn of events. Activist environmentalists can now watch tanks of crude roll down the track. Sweet.