U.S. markets closed
  • S&P 500

    +44.31 (+1.01%)
  • Dow 30

    +238.20 (+0.68%)
  • Nasdaq

    +152.39 (+1.04%)
  • Russell 2000

    +10.17 (+0.46%)
  • Crude Oil

    +0.26 (+0.36%)
  • Gold

    -3.30 (-0.18%)
  • Silver

    -0.14 (-0.56%)

    -0.0003 (-0.02%)
  • 10-Yr Bond

    +0.0210 (+1.66%)

    -0.0013 (-0.10%)

    +0.3950 (+0.36%)

    +1,638.19 (+5.08%)
  • CMC Crypto 200

    -7.40 (-0.93%)
  • FTSE 100

    +59.28 (+0.85%)
  • Nikkei 225

    +159.80 (+0.58%)
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

TC Energy (TRP) Announces Keystone Pipeline Project Cancellation

·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

TC Energy Corporation TRP announced the cancellation of the Keystone XL pipeline construction, following a comprehensive survey of its options in cooperation with the Alberta government and partners.

The Keystone pipeline project, which is alleged to negatively impact local communities and exacerbate climate change, has been experiencing criticism for the past 12 years. Earlier this year, the project was discontinued in response to American President Joe Biden’s pledge to suspend the presidential permits to proceed with the pipeline construction.

The Keystone XL pipeline system has a carrying capacity of 830,000 barrels of oil export per day from Alberta to Nebraska. Notably, the $8-billion pipeline was designed to carry crude oil from Alberta’s oil sands to U.S. Gulf Coast refineries, and about 200 kilometers of the pipeline was already installed.

However, the project was opposed by environmental activists in both Canada and the United States as they claimed that the production and extraction of oil from oil sands will release a massive amount of greenhouse gases. Hence, the construction and operation of the pipeline involved risks associated with the water supply and the environment.

Although the pipeline was expected to be a green pipeline, its operations would have generated 1.44 million metric tons of carbon dioxide per year. Notably, this is equivalent to nearly the annual emissions from 300,000 passenger cars. Additionally, the thick Canada oil sands, which are being used to produce fuel, needed a significant amount of energy to extract it.

As a result, TC Energy announced the termination of its plans to complete about 2,000 kilometers of the pipeline that would have transported crude oil from the oil sands region of Canada to the U.S. markets. The company notified that the project’s suspension will result in several job cuts, even when it intended to use renewable energy sources to power the pipeline system.

Oil pipelines have become a rallying point for activists in the United States as they claim that the volume of oil transported and burned could worsen the impacts of climate change. Notably, Enbridge Inc.’s ENB Line 3 replacement project in Minnesota is also facing backlash from climate groups, who resisted the project, alleging that it could lead to environmental and social consequences.

On its part, with Keystone XL canceled, TC Energy is planning to undo the construction, which was already completed. The company mentioned that it will cooperate with regulators, shareholders and indigenous groups to ensure a safe termination and exit from the project, which some North America environmentalists waited for years to see.

Company Profile & Price Performance

Headquartered in Calgary, AB, TC Energy is a premier natural gas-focused midstream energy service provider. The company is also involved in other businesses, including power generation, natural gas storage and crude oil pipelines.

Shares of the company have underperformed the industry in the past six months. Its stock has increased 23.1% compared with the industry’s 29.2% growth.


Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research


Zacks Rank & Stocks to Consider

The company currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are PetroChina Company Limited PTR and Whiting Petroleum Corporation WLL, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for PetroChina’s 2021 earnings has been raised by 80.4%, whereas that for Whiting Petroleum has been raised by 134.9%.

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PetroChina Company Limited (PTR) : Free Stock Analysis Report

Enbridge Inc (ENB) : Free Stock Analysis Report

TC Energy Corporation (TRP) : Free Stock Analysis Report

Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research