But TransCanada Corp.'s application for its 500,000 barrel-per-day Keystone XL line connecting Alberta to southern U.S. refineries is too much, especially after both Enbridge and TransCanada have recently built new pipelines to bring Canadian crude to the U.S., Mr. Daniel said.
"We're going to have more capacity than we need for some time. XL would add incremental capacity to that," he said. "I just don't know where the volume is going to come from based on current production forecasts."
Enbridge has fought TransCanada's application for the 3,200-kilometre long XL line on the grounds that it isn't needed and that its construction could raise pipeline tolls on oil sands exports. TransCanada has argued before the National Energy Board that oil producers have made it clear they want Keystone XL, based on the large volume of contracts they have signed. The NEB is expected to rule next year [Nathan Vanderklippe, "Enbridge Warns of Pipeline Overcapacity,"Globe and Mail, 2009.12.18].
Did you catch that part about increased pipeline tolls? Add that to what SDTSP mentions about all the debt service TransCanada will pass on to us, and you have a recipe for oil and gas prices that really won't go down much.
When we've given up our land rights to a foreign corporation only to see zero benefit in the price at the pump, don't come crying to me.
Side note: According to the same Globe and Mail story, Enbridge is also increasing its investment in wind and solar power.