Keystone Pipeline Case

If it's built, TransCanada Corporation's Keystone XL pipeline will bring crude oil from Hardisty, Alberta to Steele City, Nebraska on the Gulf Coast. The controversial pipeline project was initiated in 2005 but has faced much environmental and political lobbying and opposition over the subsequent dozen years. The pipeline project has not yet reached the construction stage. Not only will the pipeline supply oil to a major market, it would also bring economic hope to many along its route through the economic spinoffs it would provide (employment, supply of materials, etc).

The pipeline was rejected by US President Barack Obama while he was in office. However, Keystone XL has now been tentatively approved for construction by Republican President Donald Trump. However, it still faces much opposition. The following information is taken from various media sources concerning the fate of the Keystone XL pipeline.

"Keystone XL cost may surge to $10-billion, TransCanada says"

Globe & Mail, September 19, 2014

The cost of building the Keystone XL oil pipeline, which is awaiting approval from the U.S. government after an initial rejection, may climb 85 per cent to $10-billion (U.S.), according to developer TransCanada Corp. The new estimate increases the project cost from the current $5.4-billion.

TransCanada Corp., the second-largest Canadian pipeline operator, applied six years ago to build Keystone XL to carry rising supplies of oil-sands crude to U.S. Gulf Coast refineries. The pipeline was rejected by President Barack Obama in 2012. TransCanada then split up the project to build the southern portion first and refiled for approval for the northern leg with an alternate route in Nebraska.

The U.S. State Department is awaiting the outcome of a Nebraska court battle over the regulatory review of the line's path through the state before making a ruling. The department has jurisdiction over the project because it would cross the U.S. border with Canada.

Environmental campaigners have stalled progress on the project from early on in its development, arguing it would boost carbon dioxide emissions and hurt the communities that live in its proposed path. The project is one of several that activists are due to highlight at demonstrations planned at the United Nations Climate Summit, which starts next week.

TransCanada calls the opposition ignorant of the project's realities. The lack of a decision on whether the project will go ahead has resulted in it carrying costs for Trans Canada Corp. of $150-million a year.

"Keystone XL pipeline rejection sends a chill over Canada's energy industry"

Globe & Mail, November 6, 2015

The rejection of TransCanada Corp.'s Keystone XL pipeline project puts new pressure on Canada's energy industry to figure out how to ship growing oil sands production from the landlocked west to global markets.

U.S. President Barack Obama's categorical "no" to the 830,000-barrel-a-day project will not immediately shut down new oil sands projects but could have a cooling effect on growth in the industry, already stung by more than a year of sharply lower oil prices.

At a time when the energy sector is rife with job losses, TransCanada spokespeople say the Keystone XL project would have put 2,200 Canadians to work almost overnight. Not to mention benefits to the US including the creation of jobs for US workers along the pipeline route and at the final destination along with the provision of affordable fuel to the Gulf Coast. Following the rejection of the project, TransCanada said it would review its options, which include filing a new application for a presidential permit for a cross-border pipeline.

"Keystone XL construction to start next year, TransCanada says"

CBC News September 24, 2018

Keystone XL Pipeline Project ALTA. Edmonton . SASK. MAN. Hardisty . Winnipeg Proposed Keystone XL ND ........ pipeline Existing pipeline NE IL Steele City Patoka KS MO Cushing OK TX Nederland Houston Gulf of Mexico CBC NEWS Source: TransCanadaOffer some suggestions as to how the expectations of each of these stakeholders could have been better managed Ensure that your answers are applied to the Keystone case. 6 marks Describe the concept of "scope creep" and explain why this concept is such a danger with projects in general. (4 marks) Describe how scope creep has been or could be a problem in the Keystone Pipeline project specifically. (2 marks) You have been brought in as a consultant by the Board of the Calgary development company, TransCanada, to assist the current managers of the Keystone Pipeline project. Explain to these project managers why it is crucial for them to develop high performance teams to carry out this project and how this may expedite project completion. 6 marks