CALGARY, ALBERTA -- (Marketwired) -- 06/27/13 -- TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada) welcomed a scientific report published by the National Academy of Science regarding pipeline safety and the characteristics of oil sands derived crudes (diluted bitumen). Formed in 1916, the Academy describes itself as 'having earned a solid reputation as the nation's premier source of independent, expert advice on scientific issues'.
The report was commissioned by the Pipeline and Hazardous Materials Safety Administration (PHMSA) of the U.S. Department of Transportation. The study concluded diluted bitumen (dilbit) does not have unique properties that make it more likely than other crude oils to cause internal damage to pipelines from corrosion nor is dilbit more likely to cause spills when compared to other crude oils.
"The public has been bombarded with misinformation about the oil that will go through Keystone XL, but this latest study by the highly credible National Academy of Science has confirmed that oil is oil and the pipelines we build will safely move different blends - as the industry has been doing for decades," said Vern Meier, vice-president, pipeline safety and compliance, TransCanada.
The National Academy of Science report is the latest in a series of reports investigating the characteristics of oil sands derived crudes and pipeline safety. Studies completed by Batelle Memorial, Penspen Integrity, the University of Calgary, Natural Resources Canada, the Nature Journal and PHMSA have also concluded that diluted bitumen behaves the same way as other crude oil in pipelines and is just as safe to transport as other conventional forms of oil.
Key findings by the National Academy of Science panel include:
-- No evidence of causes of pipeline failure unique to the transportation of diluted bitumen-- No evidence of chemical or physical properties of diluted bitumen that are outside the range of other crude oils-- No evidence that any aspects of the transportation of diluted bitumen by transmission pipeline would cause releases more likely than the transportation of other crude oils-- The dilution process needed to help these heavy oils flow yield a stable and fully mixed product for shipping by pipeline with density and viscosity levels in the range of other crude oils transported by pipeline in the United States-- No evidence of unique or extreme properties that make diluted bitumen shipments more likely to cause internal corrosion or erosion
As the Energy Information Administration and the International Energy Agency experts have shown, U.S. refineries will continue to import 3.5 to 7.5 million barrels of oil each day through 2035. A safe, secure and reliable supply of oil is needed to heat American homes, power industry and start more than 250 million vehicles every morning. TransCanada's job is to build and operate infrastructure that will continue to get that oil to our customers safely and reliably.