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Mar 23, 2012 ||
President Obama yesterday visited the storage hub in Cushing, Okla. where he announced his administration will fast-track approval for the Keystone pipeline’s southern portion from Cushing to the Gulf.
This graphic from TransCanada shows how the company’s proposed project would look:
Keystone Pipeline Map
As you can see, phase three is the portion under construction. Phase four is the portion awaiting federal approval.
The announcement re-ignited the election-year political debate over the pipeline. The debate is indicative of the pipeline’s potential impact on markets and the economy if and when the full pipeline from Canada is approved.
Meanwhile, a Gallup poll released yesterday showed strong public support for the pipeline.
In addition to confirming that everyone in Washington D.C. supports expanding pipeline capacity to the U.S. Gulf , President Obama, while in Cushing, may have actually overseen deliveries of WTI, which would have constituted personally confirming the convergence between futures and the cash-market for WTI. Along with a number of participants in the global energy market, from politicians to regulators to commercial entities, we await similar confirmation regarding Brent futures which expire in the middle of the month.
Howard Hopkins is managing director of energy products at CME Group.
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