Enbridge Inc (USA) (ENB), TransCanada Corporation (USA) (TRP): The Future Looks Bleak for Keystone XL

Kinder Morgan Energy Partners LP (NYSE:KMP) is in a similar situation as Enbridge Inc (USA) (NYSE:ENB), but this company wants to expand an existing pipeline to Canada’s west coast. That will facilitate the delivery of oil to Asian markets, and potentially boost sales. The company is the largest energy storage and pipeline transportation firm in North America, and currently has about 46,000 miles of pipeline. That means Kinder Morgan Energy Partners LP (NYSE:KMP) isn’t relying on the expansion to the B.C. coast, making this company a better bet for investors. Right now, the firm has about $11 billion in joint venture and expansion projects, and another $3 billion are planned this year.

Risks in oil firms

While there will be a steady stream of revolt against each of these companies for environmental reasons, oil firms have continued to show that they make sound long-term investments. If TransCanada Corporation (USA) (NYSE:TRP) is eventually denied entry into the United States, the firm will face a serious blow, and any investor currently owning shares of the company should sell due to the likelihood of a denial. However, those who hold strong, in any of these firms, will likely see a gradual rise in share prices due to the financially sound books and potentially fruitful long-term projects at each company.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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