Pipeline Announcement Has Many In Cushing Pumped

CUSHING, Oklahoma -- The Canadian company behind the controversial Keystone XL pipeline is moving forward with expansion plans here in the U.S.

TransCanada announced Monday it will build the southern segment of that pipeline, starting in Cushing, Oklahoma and ending in Port Arthur, Texas.

02/27/2012 Related Story: TransCanada Announces Pipeline From Cushing To Gulf Coast

TransCanada wants to build a pipeline from Canada to the Gulf Coast. President Obama rejected that project last month, but the company doesn't need a presidential permit to build from Oklahoma to Texas.

Young Oil Tools in Cushing is one of the many businesses pumped about a TransCanada pipeline from Cushing to Texas.

The company creates pipe repair clamps and check valves. Some are sold to big corporations, but the majority go to supply stores. Still, Young Oil Tools sees success in the $2 billion pipeline plan.

"What's good for the goose is good for the gander. If it's good for TransCanada, it's good for Cushing, it's good for all the companies that are here," said James Weigant of Young Oil Tools.

TransCanada says hundreds of jobs will be created to build Oklahoma's portion of the pipeline, resulting in a billion dollar boost to economy.

The expansion will also alleviate a huge bottleneck. Cushing is overstocked with crude oil sitting in tanks because there aren't enough pipelines to get it to Texas refineries. That often means local oil producers receive $10 less per barrel.

"We got all those tanks and they're building more tanks everyday, so we need that pipeline," said Cushing resident Ron Anderson.

As a stand-alone project, the Cushing segment will not need approval from the State Department because it won't cross an international border.

If the Keystone XL is approved, the Cushing line can be tied into it later. The Obama administration supports the plan.

TransCanada says the Oklahoma to Texas segment could be operational by next summer.

President Obama rejected the Keystone XL, citing environmental concerns in Nebraska. TransCanada is working on an alternative route and says it will soon apply for a new permit for that section.