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TransCanada Corp. (TRP-T42.390.390.93%) said it will spend $2.3-billion to immediately build the southern leg of its proposed Keystone XL pipeline, aiming to fill a shortage of crude supply to refineries while the company works to make the full Alberta-to-Texas line a reality.Calgary-based TransCanada plans to connect the major North American oil hub at Cushing, Okla., to the Texas Gulf Coast, where giant heavy oil refineries are running under capacity due to shipping constraints from Cushing. The bottleneck has weighed on prices for crude shipped to Cushing, as supplies in storage grow.
While Canada is working on a deal with China, unlike the president, they haven't given up on the U.S. oil market. What does the president do next? Get spiteful and say that there is no way the oil will ever flow from Western Canada to the Gulf Coast? Or does he cave? Neither option is politically viable so perhaps he avoids the issue for as long as possible or else he tackles it "head on" by saying another review is still needed and this changes nothing.
That's what happens when you paint yourself into a corner. The president has left all of the moves with TransCanada and his Republican opponents all the while satisfying no one in his base. It's heartening to see that no one is knuckling under to the president's ham-fisted mismanagement of this whole episode in America's energy saga.