Glut of Oil in the Gulf or Not, Keystone XL Is Still Useful
One half of TransCanada's Keystone XL pipeline is complete. No, not the part everyone is protesting. It's the one that connects two of America's largest oil hubs: Cushing, Okla., and the U.S. Gulf Coast. The problem, though, is that there is a massive buildup of oil arriving at the Gulf, and it's getting to the point where the region has too much pipeline capacity for the type of oil it is getting.
This may lead many people to say, "That means we shouldn't build the rest of the Keystone XL." Hold on, though, because the northern half of the pipeline could deliver a type of oil that is actually in short supply in the U.S.: heavy oil. Tune into the video below to find out why Keystone XL could still provide value to the North American oil markets and why producers like Suncor and Canadian Natural Resources are still putting their hopes in this pipeline.
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The article Glut of Oil in the Gulf or Not, Keystone XL Is Still Useful originally appeared on Fool.com.Fool contributors Aimee Duffy and Tyler Crowe have no position in any stocks mentioned. You can follow them on Twitter @TMFDuffy and @TylerCroweFool, respectively. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.