Photo courtesy Jeff Frey

The 0.9-m (3-ft)-diameter pipeline is expected to be in service by mid-2010.

Despite some opposition, the U.S. State Department has given permission for Enbridge Inc.'s Alberta Clipper oil pipeline to cross the border. Following approval two weeks ago, construction is beginning on the U.S. leg of the 1600-km (1000-mi) pipeline that will carry crude oil from Hardisty, Alta., to Superior, Wis. Another pipeline will transfer refined products back to Canada to dilute the thick tar sands oil.

The estimated $3.7-billion project is expected to move oil by the middle of next year—shipping about 450,000 barrels daily, with potential to almost double that capacity. The American segment of the pipeline will cost close to $1.2 billion US and hire more than 3000 construction workers.

However, the project faces controversy on both sides of the border. Albertan critics fear the line will drain investment and move jobs to the United States, whereas American environmental groups argue the Canadian oil extraction process is greenhouse gas (GHG)- and energy-intensive. Despite these concerns, the project was approved for its economic and energy supply benefits.

Image courtesy Enbridge

Construction on the Canadian segment of the pipeline began last summer. From Hardisty, Alta., the pipeline traverses Saskatchewan and Manitoba. To reach Superior, Wis., the pipeline will cross northern Minnesota.