Regulators demand action after Keystone Pipeline spills 147,000 gallons of oil

In North Dakota, a significant oil spill from the Keystone Pipeline occurred recently, releasing approximately 147,000 gallons of crude oil onto farmland. The incident was linked to a rupture in the pipeline, prompting immediate cleanup efforts by the operator, South Bow. Over 200 workers have been deployed to recover oil and mitigate environmental impacts. The company reported recovering about 700 barrels, equivalent to approximately 29,400 gallons, of the spilled oil so far. Federal regulators from the Pipeline and Hazardous Materials Safety Administration (PHMSA) intervened, requiring South Bow to undertake a series of corrective actions before resuming service. These included submitting the affected segment of the pipeline to a third-party laboratory for testing and conducting a thorough investigation into the cause of the rupture. The situation resulted in the pipeline's shutdown, impacting crude oil deliveries to refineries in the Midwest. The pipeline, stretching from Alberta, Canada, to refineries across the United States, plays a crucial role in the flow of oil. Experts indicated that the current situation would lead to a 3% to 4% reduction in the total daily supply of crude to refineries, which could subsequently increase gasoline and diesel prices. The market was already beginning to react, with notable inflation in fuel prices expected in the Midwest. As the cleanup and recovery efforts continue, South Bow stated that it is committed to ensuring personnel safety and minimizing environmental risk. The company intends to work closely with regulators to ensure compliance with safety and operational standards before the pipeline can resume normal functions. Overall, the spill underscores the vulnerabilities related to pipeline transportation and the potential for significant disruptions within the oil supply chain, highlighting the importance of regulatory oversight in maintaining safety standards.