Keystone Pipeline Breach: What It Means for Oil and the Environment

Industrial plant with metal towers and pipes.

The Keystone Pipeline was shut down in North Dakota after a mysterious “bang” was heard, leading to a crude oil spill in an agricultural field that has reignited the ongoing debate about pipeline safety and energy policy.

Quick Takes

  • South Bow, the pipeline operator, detected a pressure drop and immediately initiated emergency shutdown procedures near Fort Ransom, North Dakota.
  • The spill was contained to an agricultural field with no reported impact to nearby water sources, people, or structures.
  • This marks at least the fourth significant spill for the Keystone Pipeline since 2017, though officials indicate this incident may be smaller than previous ones.
  • The pipeline normally transports 624,000 barrels of Canadian crude oil daily to U.S. refineries.
  • The incident revives discussions about the controversial Keystone XL extension canceled by President Biden in 2021, which would have created thousands of jobs and generated millions in tax revenue.

Swift Response to Pipeline Rupture

“An employee on a pump station heard what was described as a mechanical bang,” said Bill Suess, spill investigation program manager with the North Dakota Department of Environmental Quality. This alert led to the immediate shutdown of the pipeline after the control center detected a sudden drop in pressure at milepost 171 near Fort Ransom. South Bow, the company that has managed the pipeline since early 2024, quickly mobilized response teams to the scene where they discovered crude oil had been released into a farmer’s field south of the pump station.

The North Dakota Department of Environmental Quality is now overseeing containment and remediation efforts at the site. Officials have confirmed that no people or structures were affected by the spill, and importantly, a nearby stream was not contaminated. South Bow issued a statement saying they made “appropriate notifications to our regulators, landowners and customers” following the incident. The cause of the rupture and the exact amount of oil spilled remain under investigation.

History of Pipeline Incidents

This rupture adds to a troubling pattern of incidents for the Keystone Pipeline, which has experienced at least three significant spills since 2017. The largest occurred in December 2022 in Kansas, where approximately 13,000 barrels of crude oil spilled. Another notable spill took place in Walsh County, North Dakota, though officials indicate the current incident is not expected to match that scale. The pipeline’s safety record has become a focal point in the broader debate about North American energy infrastructure.

Completed in 2010 at a cost of $5.2 billion, the Keystone Pipeline has been operational since 2011. It plays a critical role in North American energy transportation, carrying Canadian crude oil to refineries in Illinois and Oklahoma. Prior to this shutdown, the pipeline was transporting an average of 624,000 barrels of oil per day, representing a significant component of U.S. energy imports from Canada. The temporary interruption has potential implications for oil supply and pricing if prolonged.

Reviving the Keystone XL Debate

This incident has reignited discussions about the controversial Keystone XL expansion project, which was designed to transport up to 830,000 barrels of crude oil daily from Alberta, Canada to the Gulf Coast. The project faced strong opposition from environmental groups concerned about potential spills and climate impacts. After years of regulatory battles, former President Biden canceled the project’s permit on his first day in office in January 2021, reversing President Trump’s approval.

The cancellation drew significant criticism from Canadian officials and many U.S. lawmakers who pointed to the project’s economic benefits. A 2014 analysis projected Keystone XL would support approximately 42,100 jobs during construction and contribute $3.4 billion to the U.S. GDP. Additionally, the pipeline extension was expected to generate $55.6 million in annual property tax revenue across Montana, South Dakota, and Nebraska. President Trump has consistently called for the project’s completion, highlighting it as part of his energy independence strategy that contrasts with the current administration’s climate-focused approach.

Sources:

Keystone oil pipeline shut down after “mechanical bang” reported

Keystone pipeline shut down after rupture

Keystone pipeline shut down after rupture, oil spill contained

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