Call to the Floor: TransCanada CEO
The proposed Keystone XL Pipeline to channel crude oil from Canada to the Gulf of Mexico would create jobs and ease energy prices for the United States, TransCanada CEO Russ Girling said Thursday on “Fast Money.”
Girling said the $7 billion project would create an estimated 20,000 U.S. jobs from construction and manufacturing, a figure he defended as estimates from an independent study.
Asked for an estimate on the pipeline’s effect on energy prices, Girling deferred from naming a specific dollar figure.
“Obviously, if we can introduce new supply, all things being equal, you would expect that would have a downward impact on prices, and that’s good news for consumers,” he said.
The Keystone XL Pipeline is awaiting approval from the Obama administration. Support for the project has come from the energy industry and labor unions, while environmental groups have raised health concerns.
“This pipeline has been under the most rigorous review,” Girling said, adding that safety precautions have been met over and above what was required. “It’s going to be the safest pipeline that’s ever been built in the United States.”
If the pipeline does not get built, Girling said the company would look at alternatives to bring the crude oil to Canada’s west coast, bound for Asian markets.
“Fast Money” pro Joe Terranova liked the stock for its dividend yield near 4 percent.
TransCanada stock prices have been pushed to the $42 level on fears that the pipeline would be rejected, sending investors toward companies such as Enbridge and Enterprise Products.
But that could turn around with pipeline approval.
“TRP could be an incredible opportunity to own, obviously, if this gets done,” he said.
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Trader disclosure: On Jan. 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long CSCO; Terranova is long AXP; Terranova is long NFLX; Terranova is long APC; Terranova is long OXY; Terranova is long TRLG; Terranova is long MUB; Terranova is long SU; Terranova is long EMC; Terranova is long SBUX; Terranova is long DECK; Terranova is long CSX; Terranova is long SJM; Terranova is long XOM; Terranova is long JNPR; Terranova is long PNC Feb. $60 calls; Terranova is long WFC Feb. $29 callsAdami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns INTC; Adami owns BTU; Adami owns NUE; Najarian owns AAPL; Najarian owns BAC; Najarian owns GS; Najarian owns BCS; Najarian owns TXT; Najarian owns URBN; Najarian owns INTC; Najarian owns CMC; Najarian owns FSLR; Najarian owns WYNN; Najarian owns DHI; Najarian owns LEN; Najarian owns WLT;
For Rich Ilcziszyn
For Russ Girling
For Moshe Orenbuch
I, Moshe Orenbuch, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report
For Mike Ryan