Download now: Cannabis Cash

TransCanada (NYSE: TRP) Delayed Again on Keystone XL

U.S. Energy Security

Written by Keith Kohl
Posted April 23, 2014 at 5:44PM

The politicos sitting in Washington are in love, and this time it's with more than just their usual lobbyists.

They now swoon for the state Supreme Court in Nebraska. If you recall, a state judge in Nebraska ruled in February that the Keystone XL pipeline couldn't be approved by the state's supportive governor.

And in doing so, the judge's ruling allowed the Obama Administration to stray from their promise made earlier this year that a decision would finally come on the controversial pipeline sometime around May.

Since the pending court case likely won't be resolved until after the midterm elections in November, the State Department can use it as a reason to delay their decision and continue to hesitate on its approval.

Washington's politicians, I'm sure, all breathed a sigh of relief in not having to make a divisive decision so close to an election.

But where will they go from here?

Clearly the pipeline will not see a 2014 construction date, and if approved after elections it could still be as long as July 2015 before construction can finally begin. Pushing it already well into the summer construction season.

In any case, Keystone XL will retain its use as a powerful political weapon. In fact, I'm not convinced that President Obama opposes it, but kicking the can down the road will be especially useful for the President if the Democrats lose their majority in the Senate.

He could use the pipeline as a bargaining chip to push immigration reform or a minimum wage increase through Congress in 2015.

Don't expect the pipeline to never be built, just expect it to take a while.

And no matter what happens in Nebraska, TransCanada (NYSE: TRP) will continue to feel the hit on the stock market until the government stops hesitating and starts approving.   

Related Articles

Diversifying U.S. Oil Production
Energy and Capital editor Keith Kohl explains why even the smallest Texas towns are booming once again.
Alaska's Peak Oil Crisis
Energy and Capital editor Keith Kohl explains why Big Oil is having a production crisis in Alaska and shows investors where to find the best oil profits right now.
OPEC's Oil Collapse
Energy and Capital editor Keith Kohl takes a deeper look into how the U.S. tight oil boom is infuriating OPEC members... and how investors are taking advantage of the situation.
Gulf Coast Oil Profits
Energy and Capital editor Keith Kohl explains why a small group of investors are banking on one of the most undervalued sectors in the oil industry.


Is it Safe for You to Buy Coal Stocks Yet?
Shedding Light on the Death of the Coal Industry
Investing in the Future of Solar
How to Profit Like an Investment Banker
Without the ITC, is Solar Still a Good Investment?
Will THIS Kill the Solar Industry?
The Secret Behind the Gatwick Gusher
Is the UK Running Out of Options?
Buffett Has a $4.5 Billion Stake in This Refiner
Refiners Are Safe Havens During the Low-Price Period
An OPEC Civil War Erupts
Strange Things Afoot in the House of Saud
Energy Utilities NEED the Internet of Things
Stay connected to stay on target!
The Lithium Revolution Just Got Hotter
Utility-Scale Lithium Batteries Taking Off
Metal Oil Investing 101
Meet the Oil of the 21st Century
Tesla's (NASDAQ: TSLA) Final Deathblow
The Ultimate Tesla Play