On Bauer Business Focus — A conversation on the Keystone XL pipeline with Andrew Schneider, business reporter for KUHF 88.7 FM.
In 2008, TransCanada Keystone Pipeline, LP filed a Presidential Permit with the Department of State to build the Keystone XL pipeline, consisting of 1,700 miles of pipeline running from Alberta, Canada, to Houston, TX.
Stephen Arbogast, an executive professor of finance at the University of Houston C. T. Bauer College of Business, stopped by Bauer Business Focus to discuss recent developments in the the Keystone project and the potential impact on the City of Houston.
“Obviously the pipeline is going to mean jobs, and it’s going to mean a better slate of crude oil for the refineries outside of Houston,” Arbogast said. “I think the biggest thing is that it’s going to move the pricing basis for North American crude oil from Cushing, Oklahoma, down to the U.S. Gulf Coast around Houston.”
With the project still in review after three years, there is some doubt brewing whether or not the pipeline project will ever be completed.
“I think the odds that some pipeline gets built somewhere that basically enables Canadian tar sands oil to come all the way to the Gulf Coast are very high,” Arbogast added. “Whether those pipelines or that pipeline will be built is the Keystone XL pipeline that looks very much up for grabs.”
Click here to hear the full interview.