The massive Republican sweep in the US midterm elections has opened the door for the Keystone XL Pipeline bill to finally be approved by Congress and signed by the President. There is even a possibility that Senate Democrats will push the Keystone Pipeline bill through before Christmas in order to help out Louisiana Senator Mary Landrieu who is in a tight run-off race against Republican Bill Cassidy. With the approval of the pipeline now a virtual certainty the question investors should begin asking is: How do I invest in order to profit from this massive project?

Pipeline_Map

Source: Wikipedia

The gulf refiners are the obvious beneficiaries from the Keystone: Valero (VLO) has seven refineries that can process more than 1.5 million barrels a day. And all of Valero's refineries are equipped to process the heavy Canadian oil. Valero has already committed to taking 100,000 barrels a day from the Keystone XL pipeline through 2030. In addition, Valero has an option to buy 15% of the Keystone pipeline.

TransCanada (TRP) is the company that is building most of the pipeline and even though much of the Keystone XL is already priced into the stock, there should be some additional upside once the bill passes Congress and is signed by the President.

While the Keystone XL project is likely to be a powerful overall economic booster for North America, there are some smaller companies that could potentially add significant alpha to investors' portfolios over the coming years. I will begin highlighting a couple of these plays this weekend in a special report....