It's official, the Keystone XL Pipeline can finally move ahead.
Last week in Washington, D.C., President Donald Trump granted Calgary-based TransCanada Corp. a permit that will allow the pipeline to cross the border into the United States.
While more hurdles still need to be cleared, GasBuddy spokesman Dan McTeague says Friday's news is good news for consumers, oil companies and governments in Canada.
McTeague says it should mean less volatility for consumers in prices at the pumps.
"Volatility comes in a couple of way, but most important in geo-politics. We've often seen oil used as a stick or a carrot by producers, most importantly OPEC, in the past to drive prices up or, in some cases, drive prices down," said McTeague.
In North America, he says more oil should mean less volatility.
"That doesn't necessarily mean lower prices, but it's likely if an emergency does take place down the road, the impact would be less than we've seen in the past. We'll have a lot more oil for the U.S. markets."
McTeague says American refineries have spent billions to reconfigure their refineries in the mid-west and Gulf coast to accept the heavier Canadian oil.
The Keystone announcement, along with the twinning of Kinder Morgan's pipeline through B.C., should represent about 1.5 million barrels of Canadian oil that will need to be produced to meet that demand.
And, he says, that may mean prices for Alberta oil will increase.
"Canadian oil is being discounted by as much as $15 a barrel. We might actually get world prices. Instead of $32 a barrel today, we might get $47," he says.
"That means more investments, which lead to higher revenues for governments to pay for our social safety nets, health care and pensions."
None of this will happen overnight.
McTeague says it could be four years before the Keystone pipeline actually gets started.
"It may be a ways off, but it does point to some positive signs."