Keystone III Begins Operations

from TransCanada

On Wednesday, January 22, 2014 TransCanada began operation of the Gulf Coast Project. The pipeline also known as Keystone III has begun delivering crude oil from Cushing, Okla., to the oil refineries in Texas. This pipeline cost $2.3-billion and provides a direct connection between the Cushing, Oklahoma oil hub and the refineries on the Gulf Coast. This project also added of 2.25 million barrels of crude oil storage capacity at Cushing and will ultimately carry 1.3 million barrels of oil a day between Oklahoma and Texas. In 2012, TransCanada announced their intension to build the Cushing Oklahoma to the Nederland, Texas portion of the Keystone XL pipeline, and to extend that pipeline 435 miles to Port Arthur and Houston. The Keystone Phase III Project (Oklahoma to Texas) began construction during the summer of 2012 and began opeations at 700,000 barrels a day yesterday.

One year ago, January 22nd 2013, Governor Dave Heineman of Nebraska signed the recommendation to the U.S. Department of State for a Presidential Permit for the Keystone XL pipeline to cross the international border. The recommendation is in support of the TransCanada’s second application for a Presidential Permit to build the northern most section of the Keystone XL pipeline (Phase IV) from the Canadian Border from where Saskatchewan meets Nebraska along this new route through Nebraska that would join up with the Keystone Phase II which runs from Steel City, Nebraska to Cushing, Oklahoma. The route avoids many of the fragile soils in northern Nebraska and the shallowest areas of the Ogallala Aquifer, but still overlies portions of the aquifer, which covers most of the state. The State Department has taken no action on the Keystone request in the past year.

There is currently an existing Keystone pipeline that runs east from Hardesty Saskatchewan to Manitoba and then south through the Dakotas to Steel City, Nebraska. It is a less direct route and is a lower volume pipeline. The existing Keystone Pipeline is known as Phase I and run from Hardesty, Canada to Steel City, Nebraska near the Kansas and Nebraska border. Keystone Phase II runs from Steel City to Cushing, Oklahoma where the Canadian crude oil and U.S. domestic production of light sweet crude from North Dakota can now be transported to the refineries on the Gulf Coast.  Keystone is not the only pipeline from Cushing, OK to Texas. Enbridge Inc. and Enterprise Products Partners owners of the Seaway pipeline that runs from the gulf coast area to Cushing, Oklahoma, reversed the flow in their gas pipeline to move crude from Cushing to the gulf coast refineries in mid-2012 with the addition of pump stations and other.  The capacity of the reversed Seaway Pipeline is up to 150,000 barrels of oil per day, a fraction of the new Keystone III Pipeline.

The Keystone XL Pipeline has been very controversial. Most of the environmental controversy has focused on the porous soils of the Sandhills and fears of a possible oil leak into one of the nation's most important agricultural aquifers. Moving the pipeline away from the aquifer should mitigate that concern. However, many who oppose the Keystone XL pipeline want to prevent the development of the oil sands resources in Canada to prevent the acceleration of global warming. The Canadian oil sands have been known for decades, but until oil prices rose and technology improved these oil deposits were too expensive to exploit beyond the limited scope of surface mining. Advances in technology in both oil sand extraction and refining techniques and rising oil prices altered the economics and have made the extraction of oil sand possible. While the advances in extraction techniques have quadrupled recoverable oil reserves and moved Canada into second place in proved world oil reserves, it requires more energy to produce the oil and increases the carbon footprint of the crude as compared to oil from the Middle East or Brazil.

The current method of mining the Canadian oil sands increases the CO2 released in every gallon of gas adding to man’s carbon footprint. In addition, older methods of mining the oil sands left open pits that still need to be reclaimed, thought today groups of wells are typically drilled off a central pad and like fracking wells and can extend for miles in all directions. This reduces surface disturbances of the land and the footprint of the area to be reclaimed.

Energy East Pipeline instead of Keystone XL- Canadian Crude Will Reach Market

from TransCanada 

TransCanada’s second application for a Presidential Permit to build the northern most section of the Keystone XL pipeline (Phase IV) from the Canadian Border in Saskatchewan into Nebraska appears to be stalled despite a recommendation from Nebraska Governor Dave Heineman. Based on comments from President Barack Obama that the pipeline that would carry 830,000 barrels of crude oil from the Canadian oil sands and Bakken oil basin in Montana and North Dakota would not create a significant number of permanent jobs, and that the net effect of the climate would be critical to the decision, the outlook for approval is not bright.

Meanwhile, TransCanada’s proposed pipelines to Canada's West Coast, the Northern Gateway, that would carry crude oil from Alberta to the Pacific port of Kitmat, for export to Asia is facing strong opposition in British Columbia by First Nations groups and environmentalists. So now, TransCanada is moving forward with an east-west pipeline entirely in Canada and outside of British Columbia. Russ Girling, TransCanada's president and chief executive officer announced at a news conference last week that TransCanada is moving forward with the 1.1 million barrel per day Energy East Pipeline project. The Energy East Pipeline project would convert a redundant 1,864 mile portion of the TransCanada's Canadian Mainline natural gas distribution pipeline to a crude oil pipeline and build the additional 870 miles of new pipeline to reach the port in Saint John, New Brunswick.

The project is expected to cost approximately $12 billion to upgrade the existing pipeline and extend its run to the coast. The pipeline will transport crude oil from the oil sands in Alberta and Saskatchewan to Montréal, the Québec City region and Saint John, New Brunswick, greatly increasing access by the oil companies to Eastern Canadian and international markets. The pipeline could replace imported oil refined in Montreal and Quebec with Canadian oil. In addition the pipeline will terminate at Canaport in Saint John, New Brunswick where TransCanada and Irving Oil have formed a joint venture to build, own and operate a new deep water marine terminal and be able the supply the United East Coast refineries and other nations.

The Energy East Pipeline, which still needs regulatory approval in Canada, will have a capacity of approximately 1.1 million barrels a day and is expected to be in service by late-2017 for deliveries in Québec and 2018 for deliveries to New Brunswick. After the July train crash in Lac-Megantic, Quebec, that killed at least 15 people, and multiple derailments in recent months as petroleum products have increasingly been transported by railroad as the pipeline projects have languished, there is a growing recognition that pipeline transport of oil is safer. Prime Minister Stephen Harper stated while the pipeline will have a thorough review, it is the safest way to transport oil.

Customers have already pledged to use at least 900,000 barrels a day of the line's capacity, as Canadian producers need a route to export their oil and Canadian refiners need oil, while regulatory hurdles delay the proposed pipelines through Western Canada and to the United States. The Canadian Association of Petroleum Producers has projected that Canadian oil output will more than double by 2030 to 6.7 million barrels per day, with most of the increase anticipated to be from the Alberta oil sands. There is demand in the world for oil and delay or denial of Presidential Permits for border crossing pipelines and delays in crossing the First Nations will not keep the oil in the ground or reduce world demand for oil and fossil fuels.

There is currently a TransCanada Keystone pipeline that runs east from Hardesty Saskatchewan to Manitoba and then south through the Dakotas to Steel City, Nebraska. It is a lower volume pipeline than the proposed Keystone IV. The existing Keystone Pipeline is known as Phase I and run from Hardesty, Canada to Steel City, Nebraska near the Kansas and Nebraska border. Keystone Phase II runs from Steel City to Cushing, Oklahoma where it still terminates, leaving the Canadian crude oil in Oklahoma along with U.S. domestic production from North Dakota that has been using the pipeline to reach the Oklahoma storage facilities.

In 2012 TransCanada began building the Cushing Oklahoma to the Nederland, Texas portion of the Keystone XL pipeline, the Keystone Phase III, a 435 mile extension of the existing Keystone pipeline to Port Arthur and Houston areas. The section of the pipeline did not require a Presidential Permit for it crossed no international borders and received state approval. The Keystone Phase III Project (Oklahoma to Texas) plans to begin operations this year.

In response to the glut of oil in Cushing, Enbridge Inc. and Enterprise Products Partners owners of the Seaway pipeline that runs from the gulf coast area to Cushing, Oklahoma, reversed the flow in their gas pipeline to move crude from Cushing to the gulf coast refineries. The reversal and change to crude required pump station additions and modifications, and was up and running in mid-2012, the capacity of the reversed Seaway Pipeline is up to 150,000 barrels of oil per day.

Enbridge has also applied for a Presidential Permit to increase the capacity of their existing 36-inch diameter Line 67 pipeline, which runs 670 miles from Hardisty, Alberta, to Superior, Wisconsin. With these improvements, the pipeline line will be able to carry up to 570,000 barrels of oil per day up from the current 450,000 barrels a day. The Minnesota project is part a larger plan by Enbridge to upgrade pipelines in the United States and Canada to ship more Canadian oil from the Alberta oil sands to the Midwest and beyond.

Keystone Pipeline New Nebraska Route Approved by Governor

On Tuesday, January 22^nd  2013 Governor Dave Heineman of Nebraska signed the recommendation to the U.S. Department of State for a Presidential Permit for the Keystone XL pipeline to cross the international boarder. This was expected after the Nebraska state regulators recommended approval of the new route for the Keystone XL Pipeline on January 4^th 2013. The recommendation is in support of the TransCanada second application for a Presidential Permit to build the northern most section of the Keystone XL pipeline (Phase IV) from the Canadian Border from where Saskatchewan meets Nebraska along this new route through Nebraska that would join up with the Keystone Phase II which runs from Steel City, Nebraska to Cushing, Oklahoma. The new route avoids many of the fragile soils in northern Nebraska and the shallowest areas of the Ogallala Aquifer, but still overlies portions of the aquifer, which covers most of the state.  

There is currently a pipeline that runs east from Hardesty Saskatchewan to Manitoba and then south through the Dakotas to Steel City, Nebraska. It is a less direct route and is a lower volume pipeline. The existing Keystone Pipeline, is known as Phase I and run from Hardesty, Canada to Steel City, Nebraska near the Kansas and Nebraska border. Keystone Phase II runs from Steel City to Cushing, Oklahoma where it still terminates, leaving the Canadian crude oil in Oklahoma along with U.S. domestic production from North Dakota that has been using the pipeline to reach the Oklahoma storage facilities. Increased U.S. oil production combined with the Canadian production has produced a glut of oil waiting to be refined in Cushing, OK.

In February 2012 TransCanada announced their intention to build the Cushing Oklahoma to the Nederland, Texas portion of the Keystone XL pipeline, the Keystone Phase III, a 435 mile extension of the existing Keystone pipeline to Port Arthur and Houston areas. The Keystone Phase III Project (Oklahoma to Texas) began construction last summer and planned to begin operations in mid to late 2013. In response to the glut of oil in Cushing, Enbridge Inc. and Enterprise Products Partners owners of the Seaway pipeline that runs from the gulf coast area to Cushing, Oklahoma, reversed the flow in their gas pipeline to move crude from Cushing to the gulf coast refineries. The reversal  and change to crude required pump station additions and modifications, and was up and running in mid 2012, the capacity of the reversed Seaway Pipeline is up to 150,000 barrels of oil per day. 

According to the TransCanada the Keystone XL will also transport U.S. crude oil from the very large Bakken oil basin in Montana and North Dakota, along with Canadian oil, to U.S. refineries. TransCanada expects the cross border permit to be processed expeditiously and a decision made now that a new route in Nebraska has been approved by state regulators and endorsed by the Governor. This is alternative route for Keystone XL Phase IV will now be submitted as part of the Presidential Permit application. Though, it seems doubtful that the application will be approved any time soon.

The Keystone XL Pipeline has been very controversial. Most of the environmental controversy has seemed to focus on the vulnerability of the porous soils of the Sandhills and fears of a possible oil leak into one of the nation's most important agricultural aquifers. Moving the pipeline away from the Sandhills should mitigate that concern. However, many who oppose the Keystone XL pipeline want to prevent the development of the oil sands resources in Canada to prevent the acceleration of global warming. The Canadian oil sands have been known for decades, but until oil prices rose and technology improved these oil deposits were too expensive to exploit beyond the limited scope of surface mining which could reach only about 8% of the oil sands. Advances in technology in both oil sand extraction and refining techniques and rising oil prices altered the economics and have made the in-situ extraction of oil sand possible. Using Steam Assisted Gravity Drainage (SAGD) combined with horizontal drilling has allowed for in-situ extraction of the oil. These advances in extraction techniques have quadrupled recoverable oil reserves and moved Canada into second place in proved world oil reserves, it requires more energy to produce the oil and increases the carbon footprint of the crude as compared to oil from the Middle East or Brazil.

The current method of mining the Canadian oil sands increases the CO2 released in every gallon of gas adding to man’s carbon footprint. In addition, older methods of mining the oil sands left open pits that still need to be reclaimed, thought today groups of wells are typically drilled off a central pad and like fracking wells and can extend for miles in all directions. This reduces surface disturbances of the land and the footprint of the area to be reclaimed. Canada’s Imperial Oil just started operations at another new oil sands site, Kearl,  producing  another 110,000 barrels per day of bitumen. This bitumen doesn’t need to be refined. It goes straight to the pipeline, but in general, refining capacity and pipeline capacity are not keeping up with the production of Canadian crude and the price has fallen to the lowest in the world.

The Keystone XL is planned to initially transport of 830,000 barrels a day which will be ultimately expanded to 1.3 million barrels a day of oil, to be processed in the oil refineries along the Gulf Coast and in Oklahoma. The Keystone XL Phase IV pipeline could be completed by the end of 2014 if they received the Presidential permit this spring. In 2011 for the first time since 1949 the U.S. exported more petroleum products than it imported.  The United States remained a net importer of crude oil, some of which was refined into petroleum products that were then exported. The increase in exported distillate fuel (mostly diesel) is what allowed the U.S. to become a net exporter of petroleum products.

American refiners still imported large, although declining, amounts of crude oil from Canada, which in 2011 topped 2 million bbl/d for the first time, and from North Dakota's Bakken formation to process into petroleum products.  According to the U.S. Energy Information Agency, the U.S. consumed 18.8million barrels per day of petroleum products during 2011, making us the world's largest petroleum consumer. Current imports are 8.4 million barrels a day and Canada supplied the largest share of these petroleum imports. The next biggest sources of U.S. petroleum imports in 2011 were Mexico, Saudi Arabia, Venezuela, and Nigeria, in that order. Overall, about 40% of U.S. petroleum imports came from countries in the Organization of the Petroleum Exporting Countries (OPEC), while 60% came from non-OPEC countries such as Canada, Mexico, Russia, and Brazil. Most ofthese petroleum imports were crude oil. 

In June 2010 TransCanada commenced commercial operation of the first phase of the Keystone Pipeline System. Keystone's Phase I was the conversion of natural gas pipeline to crude oil pipeline and construction of a bullet line that brings the crude oil non-stop from Canada to Steel City at 435,000 barrels a day. Phase II of Keystone was an extension of the pipeline from Steele City, Nebraska to Cushing, Oklahoma and began operations in February 2011. Keystone Phase II increased the volume per day of Keystone Phase I with the addition of pumping stations; the system now runs at 591,000 barrels a day. The Seaway pipeline began operations in June completing the ability to pipe crude from Canada to the Gulf Coast carrying 150,000 barrels a day. The Keystone Phase III when completed in 2013 will increase volume in the Oklahoma to Texas portion of the pipeline. The Keystone Phase IV when and if approved will increase volume of the upper portion of the pipeline from the current 591,000 barrels a day to 1.3 million barrels a day.

The Canadian pipeline, known as the Northern Gateway, is a 730 mile route from Alberta where the oil is produced to the Pacific port of Kitmat, for export to Asia. In order to  reach the port the pipeline must travel through British Columbia (the California of Canada) and is facing strong public opposition and the political leaders in British Columbia offer no support. Economic Benefit to British Columbia would be minimal. The Northern Gateway would open a potentially large new market for Canadian crude by taking oil over the Rockies to Kitimat, British Columbia, where it could be loaded onto tankers bound for China and other Asian markets. Due to the current excess in supply in the United States, the price of West Texas Intermediate crude has fallen and the price of the Canadian crude has fallen even more to near $50 per barrel due to a lack of capacity to refine the heavier crude.  The Northern Gateway could reduce that price differential somewhat and is being proposed to carry 525,000 barrels of crude a day. If it wins approval, Enbridge expects it to be up and running in 2017. 

Keystone Pipeline the Saga Continues

On May 4th 2012 TransCanada Corporation announced their application for a Presidential Permit to build the northern most section of the Keystone XL pipeline (Phase IV) from the Canadian Border from where Saskatchewan meets Nebraska using an as yet undetermined route through Nebraska to join up with the Keystone Phase II which runs from Steel City, Nebraska to Cushing, Oklahoma. This is the newest step after announcing on February 27th 2012 their intension to build the Cushing Oklahoma to the Nederland, Texas portion of the Keystone XL pipeline, the Keystone Phase III, a 435 mile extension of the existing Keystone pipeline to Port Arthur and Houston areas. The Keystone Phase III Project (Oklahoma to Texas) is expected to begin construction this summer and begin operations in mid to late 2013. TransCanada hopes to have the northern section completed in 2015.

If you recall the   existing Keystone Pipeline Phase I runs from Hardesty, Canada to Steel City, Nebraska near the Kansas and Nebraska border. Keystone Phase II runs from Steel City to Cushing, Oklahoma where it terminates, leaving the Canadian crude oil stranded in Oklahoma along with U.S. domestic production from North Dakota that has been using the pipeline to reach the Oklahoma storage facilities. Increased U.S. oil production combined with the Canadian production has produced a glut of oil waiting to be refined in Cushing, OK.

Russ Girling, TransCanada's president and chief executiveofficer was quoted in the TransCanada press release as saying: "KeystoneXL will transport U.S. crude oil from the very large Bakken oil basin inMontana and North Dakota, along with Canadian oil, to U.S. refineries.” Mr. Girling added that he expected the cross border permit to be processed expeditiously and a decision made once a new route in Nebraska is determined. TransCanada is working directly with Nebraska's Department of environmental Quality (DEQ), to determine an alternative route for Keystone XL Phase IV that avoids the environmentally sensitive Sandhills watershed. Several alternate routes and a preferred route were submitted to the DEQ April 18. The DEQ will now determine a specific route and oversee the public comment and review process. Once a route is finalized, it will be submitted as part of the Presidential Permit application.

The Keystone XL Pipeline has been very controversial. Most of the environmental controversy has focused on the porous soils of the Sandhills and fears of a possible oil leak into one of the nation's most important agricultural aquifers. Moving the pipeline away from the aquifer should mitigate that concern. However, many who oppose the Keystone XL pipeline want to prevent the development of the oil sands resources in Canada to prevent the acceleration of global warming. The Canadian oil sands have been known for decades, but until oil prices rose and technology improved these oil deposits were too expensive to exploit beyond the limited scope of surface mining. Advances in technology in both oil sand extraction and refining techniques and rising oil prices altered the economics and have made the extraction of oil sand possible. While the advances in extraction techniques have quadrupled recoverable oil reserves and moved Canada into second place in proved world oil reserves, it requires more energy to produce the oil and increases the carbon footprint of the crude as compared to oil from the Middle East or Brazil.

The current method of mining the Canadian oil sands increases the CO2 released in every gallon of gas adding to man’s carbon footprint. In addition, older methods of mining the oil sands left open pits that still need to be reclaimed, thought today groups of wells are typically drilled off a central pad and like fracking wells and can extend for miles in all directions. This reduces surface disturbances of the land and the footprint of the area to be reclaimed.

The Keystone XL is planned to initially transport of 830,000 barrels a day with a planned expansion of 1.3 million barrels a day of oil, to be processed in the oil refineries along the Gulf Coast and in Oklahoma and used within the U.S.  According tothe U.S. Energy Information Agency, the U.S. consumes 14 to 15 million barrels of oil each day. Current imports amount to almost 9 million barrels a day, approximately 60% of the United States' requirements. The Keystone XL pipeline could ultimately represent 10%-14% of oil imports.  

In June 2010 TransCanada commenced commercial operation of the first phase of the Keystone Pipeline System. Keystone's Phase I was the conversion of natural gas pipeline to crude oil pipeline and construction of a bullet line that brings the crude oil non-stop from Canada to Steel City at 435,000 barrels a day. Phase II of Keystone was an extension of the pipeline from Steele City, Nebraska to Cushing, Oklahoma and began operations in February 2011. Keystone Phase II increased the volume per day of Keystone Phase I with the addition of pumping stations; the system now runs at 591,000 barrels a day. The Seaway pipeline, a joint venture between Enterprise Products Partners L.P. and Enbridge Inc., will begin operations in June completing the ability to pipe crude from Canada to the Gulf Coast carrying 150,000 barrels a day. The Keystone Phase III when it is completed will increase volume in the Oklahoma to Texas portion of the pipeline. The Keystone Phase IV when and if approved will increase volume of the upper portion of the pipeline from the current 591,000 barrels a day initially to 830,000 barrels a day then to 1.3 million barrels a day.

Keystone Pipeline the Never Ending Story

On February 27th 2012 TransCanada Corporation announced their intension to build the Cushing Oklahoma to the Gulf Coast portion of the Keystone XL pipeline, the Keystone Phase III, a 435 mile extension of the existing Keystone pipeline to Port Arthur and Houston. The existing Keystone Pipeline Phase I runs from Hardesty, Canada to Steel City, Nebraska near the Kansas and Nebraska border. Keystone Phase II runs from Steel City to Cushing, Oklahoma where it terminates, leaving the Canadian crude oil stranded in Oklahoma along with U.S. domestic production from North Dakota that has been using the pipeline to reach the Oklahoma storage facilities. As oil prices have climbed recently the 55 million barrels of oil that can be stored in Cushing have produced a glut of oil waiting to be refined and the lowest gas prices in the nation for the mid-west.

In response to the glut of oil in Cushing, Enbridge Inc. and Enterprise Products Partners (who purchased a 50% interest in November) owners of the Seaway pipeline that runs from the gulf coast area to Cushing, Oklahoma, announced their intention to reverse the flow in their gas pipeline to move crude from Cushing to the gulf coast refineries. The reversal requires pump station additions and modifications, scheduled to be completed by June 2012, the capacity of the reversed Seaway Pipeline will be up to 150,000 barrels per day and further expansions could increase that volume. Now, TransCanada Corp. has announced that it will build a portion of the Keystone XL pipeline from the Cushing oil hub south to the Gulf Coast to compete with the Seaway pipeline while attempting to obtain approval of a revised route for the Keystone Phase IV leg to increase flow from Canada to Steel City, Nebraska.

The Keystone XL Pipeline has been very controversial. Most of the environmental controversy has focused on the porous soils of the Sandhills and fears of a possible oil leak into one of the nation's most important agricultural aquifers, TransCanada is reapplying for State Department and Presidential approval of a revised rout for the northern portion that bypasses the Sandhills. However, many who oppose the Keystone XL pipeline want to prevent the development of the oil sands resources in Canada to prevent the acceleration of global warming. The Canadian oil sands have been known for decades. Until the recent protests against the Keystone XL pipeline that labeled these oil reserves “Canadian Oil Sands,” they had been variously known as unconventional oil or crude bitumen. These oil sands have been surfaced mined in Canada with drag lines and power shovels since the late 1960’s, but until oil prices rose and technology improved these oil deposits were too expensive to exploit beyond the limited scope of surface mining. Advances in technology in both oil sand extraction and refining techniques and rising oil prices altered the economics and have made the extraction of oil sand possible.

Steam Assisted Gravity Drainage (SAGD) is the current method of extraction. In SAGD, two horizontal wells are drilled in the oil sands, one at the bottom of the formation and another about 15-20 feet above it. In each well pair, steam is injected into the upper well melting the bitumen, which flows into the lower well and is pumped to the surface. SAGD was the breakthrough that has quadrupled recoverable oil reserves and moved Canada into second place in proved world oil reserves. SAGD is cheaper than previous methods, allows very high oil production rates, and recovers up to 60% of the oil in place. It is the SAGD method that has created the need for a pipeline to deliver the oil to the American markets and the controversy. SAGD requires more energy to produce the oil and increases the carbon footprint of the crude. Those who believe completely in the positive feedback global warming model where increased CO2 raises global temperature, increases evaporation of water vapor to the atmosphere, and in turn increases the functional impact of CO2 on global warming see any increase in carbon as quickening the destruction of the earth. The Canadian oil sands increase the CO2 released in every gallon of gas adding to man’s carbon footprint. In addition, older methods of mining the oil sands left open pits that still need to be reclaimed, thought today groups of wells are typically drilled off a central pad and like fracking wells and can extend for miles in all directions. This reduces surface disturbances of the land and the footprint of the area to be reclaimed..

In June 2010 TransCanada commenced commercial operation of the first phase of the Keystone Pipeline System. Keystone's Phase I was the conversion of natural gas pipeline to crude oil pipeline and construction of a bullet line that brings the crude oil non-stop from Canada to Steel City at 435,000 barrels a day. Phase II of Keystone was an extension of the pipeline from Steele City, Nebraska to Cushing, Oklahoma and began operations in February 2011. Keystone Phase II increased the volume per day of Keystone Phase I with the addition of pumping stations, the system now runs at 591,000 barrels a day. The Seaway pipeline will begin operations in June completing the ability to pipe crude from Canada to the Gulf Coast carrying 150,000 barrels a day. The Keystone Phase III when it is completed will simply increase volume. The Keystone Phase IV when and if approved will increase volume of the upper portion of the pipeline from the current 591,000 barrels a day to 1.3 million barrels a day.