ConocoPhillips has signed a memorandum of understanding with TransCanada Pipeline to take a 50% stake in the planned Keystone oil pipeline. The 3456 kilometre Keystone link, will be able to deliver 590,000 bpd of crude oil from Hardisty, Alberta, to US Midwest markets at Wood River and Patoka, Illinois, and to Cushing, Oklahoma. Initial deliveries to Patoka are expected to begin late next year.
The Keystone Pipeline also received US environmental approval, another significant milestone for the project.
Suncor gave final internal investment approval to increase production capacity in their oil sands operations north of Fort McMurray to 550,000 bpd by 2012, which is an increase of 200,000 bpd. The investment, which is estimated to cost $20.6 billion, will include building four more stages of in-situ bitumen production, a new upgrader to convert that bitumen into higher-value crude, and necessary infrastructure and utilities.