The Path to Keystone’s Approval

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 19 (Bloomberg) -- Kevin Book, Managing Director and Co-Founder of ClearView Energy Partners, discusses arguments for and against the approval of the Keystone XL Pipeline. He speak on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Kevin, one of the things that stood out in that conversation is this notion that the oil will find its way to the gulf, not just export markets like china, for example.

It will eventually get to the gulf either way because it is so cheap that there is economic incentive to get there, by rail, by barge down the mississippi.

Is he right?

Yes, he is, and that was a great interview.

As long as you are using it for fuel, it is money in the ground.

And money does not stay in the ground very long.

It will get to a market.

The discount from the resources in canada will be all the reason you need to put it on a train.

And to get it down to the refinery.

It is not the best environment for some producers when they are taking steep discounts, but it will still get to market.

No question.

The other.

He made, if it will work to get to the gulf that way, by rail and by barge, there will be significantly greater risk environmentally, and also the risk of accidents that could lead to the kinds of fatalities that we saw in quebec just a couple of weeks ago, a tragic accident when real cars filled with crude oil derailed and cost at least 30 people their lives.

That is where you get when you ask a pipeline by to talk about the issue.

If you talk to a rail by the -- a real the the person, you'll hear about the options that real provides.

Well is becoming increasingly multi level.

You have places where it can go into pipelines and places where it is by rail.

He won both.

In this particular -- you want both.

In this particular incident, it was very tragic.

The challenge of trying to gain out when this could happen, what is the most realistic case for when this could be approved and when it could start to take effect?

I think his perspective on this is one where he had had enough reasons to revise where he was cautious as a ceo.

If approval could be september or october, there is about 75 days, plus a final 15 in the national interest determination for other agencies to comment.

If they do finally get the environmental impact statement out this summer, that would put them into the early 2016 for the first flow.

When i asked him if this was a special case for a new reality for all pipelines, he said it was a bit of both.

If part of that is true, what does this mean for the pipeline industry?

Extraordinary approval processes for keystone, and others as well even if it is not six years.

We do think it is bigger than pipelines themselves.

The environmental movement has passed for transportation projects to be reviewed on the basis of their upstream and downstream environmental impact.

That is a massive change from the way things usually work.

As he said, it is just a door -- when is a door just a door?

As he said, it is just a door when it is enabling upstream and not causing damages downstream.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change