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Keystone Pipeline Shuts Down After North Dakota Rupture

Coin WorldTuesday, Apr 8, 2025 4:46 pm ET
2min read

The Keystone oil pipeline, a critical infrastructure valued at $5.2 billion, was forced to shut down following a rupture in rural North Dakota. This incident has halted the flow of thousands of gallons of crude oil from Canada to refineries in the United States. The pipeline, managed by south bow, a Calgary-based liquid pipeline business, was shut down after control center leak detection systems detected a pressure drop. The spill is contained within an agricultural field, and the affected segment has been isolated. The primary focus is on the safety of onsite personnel and mitigating environmental risks.

The pipeline, which transports an average of 624,000 barrels per day, was constructed in 2010 and carries crude oil from Alberta through several U.S. states to refineries in Illinois and Oklahoma. The cause of the rupture and the volume of crude oil spilled are not yet clear. An employee at the site near Fort Ransom heard a "mechanical bang" and shut down the pipeline within about two minutes. Oil surfaced about 274 meters south of the pump station in a field, and emergency personnel responded promptly. Fortunately, no people or structures were affected by the spill, and a nearby stream, which only flows during part of the year, was blocked off and isolated as a precaution.

The Pipelines and Hazardous Materials Safety Administration is sending a team to investigate the cause of the leak. Fort Ransom, located in a hilly, forested area of southeastern North Dakota, is known for its scenic views. The rate at which the 80-centimeter pipeline was flowing at the time of the rupture is unclear, but even at two minutes, it is expected to have released a significant volume of oil. However, it is noted that much larger spills have occurred in the past, including one involving the same pipeline a few years ago in Walsh County, North Dakota.

The Keystone Pipeline was originally constructed by tc energy but is now managed by South Bow as of 2024. A proposed extension to the pipeline, known as Keystone XL, was intended to transport crude oil to refineries on the Gulf Coast. However, it was ultimately abandoned by the company in 2021 after years of protests from environmental activists and Indigenous communities over environmental concerns. In December 2022, nearly 13,000 barrels of oil spilled from Keystone’s line in Kansas into a creek traversing a pasture. An engineering consulting firm attributed the spill to an overstressed bend in the pipeline, likely due to construction activity altering the land around the pipe. TC Energy stated that a faulty weld in the line’s bend caused a crack that exacerbated over time.

This incident highlights the ongoing challenges and risks associated with large-scale oil transportation infrastructure. The shutdown of the Keystone pipeline underscores the vulnerability of such systems to mechanical failures and the potential environmental impact of spills. The investigation into the cause of the rupture will be crucial in determining the necessary measures to prevent similar incidents in the future. The focus remains on ensuring the safety of personnel, mitigating environmental damage, and restoring the pipeline's operations as quickly as possible.

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Plane-Salamander2580
04/08
Rupture risks = why renewables matter more daily
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Certain-Dragonfly-22
04/08
@Plane-Salamander2580 renewables < pipelines, lol.
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MrJSSmyth
04/08
@Plane-Salamander2580 True, renewables r the way.
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DumbStocker
04/08
Pipeline news = volatility. Trade smart, folks. 😅
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aj_cohen
04/08
South Bow's got a mess on their hands. Reputationally, this doesn't look great. Are they prepared for regulatory backlash?
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Empty_Somewhere_2135
04/08
Pipeline drama, oil spill chaos. Just another day in the wild ride of energy trading. Who's betting on $TSLA to clean up the mess? 🚀
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Empty_Somewhere_2135
04/08
@Empty_Somewhere_2135 You think $TSLA will moon?
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werewere223
04/08
Holding some energy ETFs here. Diversification is key, but pipeline risks make me rethink the balance. Anyone else reevaluating?
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iSyntac
04/08
@werewere223 How long you been holding energy ETFs? Any specific stocks you're worried about?
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racoontosser
04/08
Mechanical failures, time for tech upgrade in pipes
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khasan14
04/08
Keystone's got issues, long-term bet on $AAPL instead
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aj_cohen
04/08
Investors, keep your eyes on pipeline safety stocks. This incident could boost the sector as companies focus on security measures.
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dritu_
04/08
Oil spills, environmental headache. Who profits from cleanup?
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acg7
04/08
@dritu_ Cleanup costs usually fall on the pipeline company, in this case, South Bow.
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SqueezeStreet
04/08
When a $5.2B pipeline acts like a 14-year-old car, maybe it's time for a newer, greener model
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Neyo_708
04/08
Remember when $AAPL was the only game in town? Now it's all about energy stocks and pipeline safety. Times change, folks.
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Fair-Lingonberry-268
04/08
@Neyo_708 What’s your take on energy stocks now?
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mia01zzzzz
04/08
Rupture contained, but the environmental impact could still be messy. Long-term effects might be felt in the market for months to come.
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BoomsRoom
04/08
This spill could mean more pressure on companies to go green. Long-term, that might shift the market landscape significantly.
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Lurking_In_A_Cape
04/08
Keystone's shutdown is a short-term hiccup or a long-term shift? Depends on how quickly they repair and regain trust.
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TenMillionYears
04/08
South Bow managing Keystone? Sounds like a new player in the big leagues. Wonder how this affects the energy market dynamics.
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HobbyLegend
04/08
@TenMillionYears South Bow stepping up? Big move.
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Senyorty12
04/08
@TenMillionYears Yeah, new player, new vibes.
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