Is there any doubt that the proposed Keystone XL pipeline will – at some point – be approved by the U.S. government? “Absolutely none” says this advisory.
To begin with, Canada is “a safe, politically stable country with huge oil reserves, right next door to the United States.” The latter country is so “thirsty for oil” that it will “hold its nose and do business with Venezuela to get it,” despite the anti-U.S. rhetoric “flying out” of that country. No, reiterates this advisory, there should be no doubt that the Keystone pipeline will eventually be approved.
In the meantime, we should have some sympathy for the “ordeal” that senior management of TransCanada Corporation (TRP-TSX, $45.43) is going through. Since initially proposing a pipeline that will run down to the U.S. Gulf Coast, they’ve had to cool their heels waiting for a U.S. presidential election to play out, then wait some more for presidential approval.
That approval, by the way, is still pending “more than a year and a half after the election.” In the meantime, TRP has had to go along with costly route changes to the pipeline. That is, when it’s not dealing with a multitude of environmental groups. And lawsuits too – a regulatory watchdog is looking into how contracts were awarded. So let’s say it once again: Keystone will be approved. But not before various parties have their “pound of flesh.” TransCanada is a “buy.”
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