By November 22, 2017 Read More →

Keystone clean up to take weeks, unsure restart date


The weeks-long shutdown of the Keystone pipeline could cut total shipments of Alberta crude by about 7 million barrels. DroneBase/Handout via Reuters photo.

Keystone pipeline leaked 5,000 barrels of oil in South Dakota

South Dakota’s environmental regulator said the clean up of oil spill on the TransCanada Keystone pipeline in South Dakota could take several weeks, according to a Reuters report.

Late last week, the pipeline that carries about 590,000 barrels per day of Alberta crude to US refineries leaked 5,000 barrels in a rural area of the state.

“We expect it to take several weeks. Our focus is making sure they do that clean-up in accordance with our regulations,” Brian Walsh, environmental scientist manager for the South Dakota Department of Environment and Natural Resources told Reuters.

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A spokesman for TransCanada says the company has so far recovered 571 barrels of oil.

“Repair plans will be confirmed once we are able to safely expose the impacted section of pipe,” he said.

A PHMSA spokesman said US pipeline regulatory officials will remain at the site of the spill until the line is restarted and will monitor the excavation and packaging of the damaged pipe section for testing.

The Calgary-based company is working with the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) on a return to service date for the pipeline.

Energy News Today reported that Phillips 66, whose refinery sources some of its crude from the Keystone pipeline, told its staff that the line could be closed for as long as four weeks.

The spill was likely a factor in a boost in oil prices Wednesday, as the shutdown of the pipeline will cut deliveries by 85 per cent or more through the end of November.

Traders told Reuters that this reduction would cut shipments by about 7 million barrels of crude.

The United States imports over 3 million barrels of oil a day from Canada.

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