TransCanada made the right move by agreeing to tie its Keystone XL oil pipeline to the Bakken oil formation in Montana and North Dakota, Montana official said. TransCanada aims to build the Keystone XL oil pipeline to carry oil from the Athabasca oil deposit in Alberta to Steele City, Neb. The project includes links that would let around 100,000 barrels of oil per day pass through the line from the Bakken oil formation in the region, The Washington Post reports. Oil production in North Dakota has increased every year for the past four years. Much of the production is from the lucrative Bakken formation. Montana Gov. Brian Schweitzer said he managed to pressure TransCanada to agree to make concessions for Bakken crude through a so-called on ramp. Part of the formation lies in his state. \"Today, TransCanada would say the smartest thing they ever did was sign (up for) those on-ramps,\" Schweitzer told Post. TransCanada officials balked at the prospect during the early stages of Keystone XL planning because of emerging Bakken development. The US Geological Survey in 2008 estimated there were 3 billion-4.3 billion barrels of oil in the U.S. part of the formation. That estimate was 25 times greater than the previous estimate in 1991.