Last week, The Calgary Herald reported on U.S. President Donald Trump's decision to grant TransCanada Corporation (NYSE: TRP) a permit to move ahead with its Keystone XL project, the fourth phase of a pipeline that carries light crude oil, synthetic crude oil, and diluted bitumen between Hardisty, Alberta and the Gulf of Mexico. The Keystone Xl would duplicate the first phase of the pipeline, with a larger pipe over a more direct route, between Steele City, Nebraska and Alberta's oil sands.

Jackie Deangelis, with CNBC, reported on how market conditions for crude oil have changed since the Keystone XL was first proposed in 2008.

In June and July of that year, Oil Prices spiked above $130, sparking fears of shortages among producers, politicians, and other market participants. Ms. Deangelis described the United States "needing the crude from Canada" in 2008, and suggested that, as a result of the "shale revolution," the Keystone XL might be delivering excess oil into a market already facing a supply glut.

Can demand keep up with new supply?

The CNBC host described members of OPEC not sticking by recent pledges to curb production, and cited U.S. shale producers increasing output, as the price of crude has fallen below $50. She asked if more crude being added to the current supply, which appears to already be depressing prices, might depress them even further.

Ms. Deangelis also spoke about varying visions for the U.S. oil industry, as held by Donald Trump, and oil market participants. She cited a seeming goal of the president to bring total energy independence to the United States, and contrasted this with concerns of oil companies, and analysts, about falling profits in the face of falling prices.

The possibility of the price of oil dipping below $40 was raised.

State permits still required for Keystone XL

Even though President Trump and the federal government have granted their blessings for the Keystone XL, the states that pipeline will run through, Montana, South Dakota, and Nebraska, still need to issue permits for the project to go ahead.

CNBC reports that this process could take over a year. The Calgary Herald reports that opponents of the project have promised to "press legal challenges," and "vocalize their opposition in town meetings."

President Trump was said to have asked TransCanada to use American-made steel for the construction of the Keystone XL, in return for permission to go ahead with the project. Russ Girling, chief executive officer with the company, was said to have agreed to the president's terms. CNBC has clarified these reports, stating that sections of pipeline that have already been constructed, using steel from other nations, will still be used, but that American steel would be used in "future projects."

The CEO was quoted with regard to his gratitude that the president considered the project, which had been blocked by the administration of former President Barack Obama, since 2015.

Mr. Girling called the Keystone XL an "important initiative," and stated that he was looking forward to working with the Trump administration on the $8 billion project.

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