By Steve MarchettiEngadgetThe oil and gas industry has been struggling to deal with a major spike in global demand.
The US$1.4 trillion pipeline project from Alberta to the Gulf Coast has proven to be more difficult than anticipated.
In addition, production is now falling sharply.
The company behind the Keystone XL and Dakota Access pipelines, Plains All American Pipeline Co., is struggling to make the right decisions about which pipelines to build, and which to avoid.
The company has been working on two pipelines that will transport natural gas from Canada to the Mid-Atlantic, a move that would allow it to build new pipelines that are more expensive and more difficult to complete.
When it comes to the pipelines themselves, the US$6.4 billion project to carry Bakken crude oil from North Dakota to refineries in Louisiana is currently the only one to be built, but that’s not enough to offset the steep decline in oil prices.
Plains All Americans has said that the price of oil will soon rise to about US$80 a barrel, which is the point at which production would have to stop.
In a letter to the Federal Energy Regulatory Commission, Plains all American said that if the price for oil stays low, it is unlikely that the project will be built.
The letter also said that Plains All America would not be able to make its proposed construction decisions until a longer-term outlook on crude oil prices is available.
The company has also been working with the Canadian government to help it reduce its reliance on imports, which are a growing source of greenhouse gases.
The pipeline project, however, will also likely require more pipelines, which will also be more expensive.
The pipeline is one of the main sources of carbon emissions for the US, which contributes nearly US$8 billion annually to the economy, according to the US Department of Energy.
The Keystone XL pipeline would carry 1.7 million barrels of oil per day from Alberta, Canada to refiners in Texas.
The Dakota Access pipeline would transport 1.4 million barrels per day.
Both the Keystone and Dakota projects have been approved by the US Senate, and they would be the first major pipeline projects to be approved by President Donald Trump.