This was after there was pressure drop that was noted in the system on Wednesday, in an effort to solve this issue the operators of Keystone Oil Pipeline, TC Energy, had to perform an emergency shut down.
This paper will therefore seek to discuss the Keystone oil pipeline.
• The company’s critical pipeline right through to 2687M connects crude oil sources in Alberta to the refining markets in the United States of America especially Texas, Oklahoma and Illinois.
• It links the supply of crude from Cushing Oklahoma to the refining market in the US Gulf Coast.
Keystone pipeline shutdown: Response & impact
• While TC Energy says it is still working with third parties to contain and mitigate the situation as soon as possible.
• The company has not given any information on when it plans to reopen the front and the flow of the oil pipeline.
• WTI Crude, the price of the United States benchmark for oil, rose by more than 3 per cent upon receipt of information of the closure of the Keystone Pipeline.
How are the inventories shaped in the US at the current time referencing to oil?
• Going with EIA, the US crude supply stocks reduces by 5.2 million barrels of supply stock up to December 2nd.
• But the gasoline stocks increased by 5.3 million barrels for the week ended December 2.
• Also, the quantities of middle distillate stock inials, diesel, rose by 6.2 million barrels for the week through up to Dec 2.
Causes of the Leak
Several factors can contribute to pipeline leaks, including:
- Corrosion: Metal pipes used over the years can rust, and thus develop expansion joints, cracks or even holes.
- Material Defects: These pipelines have features that are traceable to the manufacturing structures of their materials and can generate susceptibilities.
- Operational Errors: Slip-up in the management of the pipeline causes detrimental leakage accidents to happen.
- Environmental Stressors: Accidents of floods, landslides and even earthquakes may affect pipelines.
Consequences and Effects of the Leak on the Environment
Sea oil spillage has disastrous effects on the surroundings. Here are the primary areas of concern:
- Soil and Water Contamination: Crude oil can infiltrate the ground and contaminate the earth and water which affect farm produce and water used by human beings.
- Wildlife Harm: The wildlife in the regions that receive the negative impacts of the oil films themselves are at the risk of serious health deterioration on account of oil exposure.
- Air Quality: One inconvenience that is associated with use of this oil is that it contains some volatile organic compounds that pollute the air.
- Long-Term Ecological Damage: The effect of species behavior on ecosystems and other forms of biological diversity could have years of social implication.
