Getting Keystone XL pipeline started is a ''fantastic idea,'' says Bob Yawger, director of futures division at Mizuho Americas, but he adds he isn't sure whether the United States needs extra barrels. Fred Katayama reports.
U.S. President Donald Trump gave TransCanada permission to build the Keystone XL oil pipeline that will transport crude from Canada to the U.S. (SOUNDBITE) U.S. PRESIDENT DONALD TRUMP, (ENGLISH) SAYING: "Today, I'm pleased to announce the official approval of the presidential permit for the Keystone XL pipeline." Trump said it will create 28,000 jobs and help the oil industry. The jobs and the expedited approval are part of his $1 trillion infrastructure package he promised during his campaign. But before construction begins, TransCanada needs to get financing, permits, and fend off likely legal challenges. Bob Yawger, director of futures division at Mizuho Americas, says greenlighting Keystone XL is a "fantastic idea," but there is a caveat. (SOUNDBITE) ROBERT YAWGER, DIRECTOR FUTURES DIVISION, MIZUHO AMERICAS, (ENGLISH) SAYING: "I'm not so sure we really need extra barrels in the United States at this point. And I'm not so sure that the government of Canada agrees with that they need to send those barrels here either. They have several other pipes in the planning stage that they could always go to, and that could also possibly make more economic sense. So, since the Obama administration has canceled the pipe, they have an alternate plans that have gone to the to the board, and they have gained some weight since than. It's going to be a debate whether it is time right now to complete Keystone or not." The Keystone pipeline will bring more than 800,000 barrels per day of heavy crude from Canada's oil sands in Alberta to Nebraska. It had been blocked for years by former President Barack Obama, who said it would not lower gas prices, but add to emissions linked to global warming.