With record oil production in the United States likely to soften any domestic blow volatility on the world scene will have, America will still feel a pinch. Iraq’s current political and military problems make the security of Canada’s oil sands and TransCanada’s Keystone pipeline more appealing.
The project which needs approval from the US government because it crosses the border with Canada has been mired in government red tape and political posturing for years. Each time a decision seems near, President Barack Obama puts it off. Despite this and the opposition to the pipeline, TransCanada has actually built a good portion of it in the States.
Back to Iraq, the middle eastern country was the sixth largest net exporter of petroleum in the world just two years ago. And the majority of its oil exports go to the United States.
So turmoil in Iraq could lead to oil shortages. TransCanada’s Keystone pipeline would help solve that. And senators are pushing an agenda to get it approved.
(source: The Motley Fool)