Skip to comments.The Keystone Pipeline Is Quickly Becoming Obsolete
Posted on 05/07/2014 12:42:39 PM PDT by SeekAndFind
Canadian oil prices are now just $18 below the price of U.S. crude thanks to a series of new U.S. pipelines, The Wall Street Journal reported this morning. This means the Keystone XL Pipeline is already obsolete.
"Higher oil prices in Canada ... are a sign that oil-sands crude is finding its way to the U.S. even without the approval of the controversial Keystone XL pipeline," Journal reporters Nicole Friedman and Chester Dawson said. "The resurgence in Canadian oil prices and energy stocks is further confirmation that the transportation problems that have prevented both Canada and the U.S. from enjoying the full benefits of the energy boom are easing."
Until recently, crude from Canada's booming tar sands was getting trapped in the Midwest, preventing it from getting to the Gulf where it could be exported at market prices.
But in January, engineers switched on the Seaway Pipeline, which connects the major crude delivery hub in Cushing, Okla., with Gulf refineries. And rail now transports 550,000 barrels of Canadian crude, when five years ago barely 1,000 barrels were processed.
As a result, the price of Canadian oil has since risen to $80.67 a barrel as of Tuesday, about $18 below WTI. In November the gap was as large as $40.
"It's not a necessity today," Chris Theal, president of Kootenay Capital Management in Calgary told BI. If current growth rates continue, he said, something like the Keystone may be needed. But Canada has gotten the hint from the Obama Administration, which has shown little interest in expediting the approval process, and has begun considering new pipelines. Two would take Alberta crude to Canada's west coast, another to New Brunswick on its eastern shore.
Analysts say that spread satisfies market conditions, and leaves Canadian producers in good shape.
(Excerpt) Read more at businessinsider.com ...
And keeps a whole pack of jobs and tax revenue safely out of the United States. Yay.
This is from the DNC-leaning “Business Insider” so I take it with a grain of salt.
Joint press release by Warren Buffet and Obama?
In other words the Obama administration will have to more pro active, in other ways; in thwarting economic, reliable and clean energy.
Perhaps they can go back to destroying small business.
The Embridge pipeline across southern Michigan to Sarnia has doubled capacity or is nearly finished doubling it.
The Keystone has done a good job of distracting green weenies.
We need to complete Keystone to drive the last nail into the coffin of the socialist government in Venezuela.
Until the next rail disaster
We need to complete Keystone to drive the last nail into the coffin of the muslim extremists that the DNC supports.
Saaaaaaaaaaaay ... Keystone bypasses Illinois. Might Illinois garner a tax on anything that flows down the red line? Is there a whole other aspect to the Keystone delay that flies under the radar?
Unfortunately your fellow citizens voted for an anti-growth, anti-America, anti-Christian, anti-white, anti-energy president. He was elected. They got the results they voted for.
But they gained the most important thing of all -
their own self-righteousness.
This idiot knows nothing about the energy industry or the laws of supply and demand. The original reason for the Keystone Pipeline was that expected capacity in Alberta exceeded existing transportation pipelines. Killing the Keystone Pipeline delayed drilling projects in Alberta as well as created a search to find other ways to get the oil to market. This resulted in the lack of oversupply in Alberta and the reduction of oil delivered to the U.S. As a result oil prices went up both in the U.S. and in Canada.
It was always said that if Keystone was not built the oil would go to the Pacific and to Asian markets, primarily China. This is what will happen.
Drilling will eventually expand again in Alberta. The oil just won’t go to the U.S.
Among other reasons why reliance on rail is a poor decision for the long run.
And there is some discussion of piping the stuff to Superior, Wisconsin and then loading it on tankers for delivery to Midwestern and Great Lakes refineries.
The pipeline would reduce the price. Plus it’s still cheaper now. This is BS.
Oh, I hope you didn’t misread my intent - this was the Obama admin getting exactly what they wanted.
FYI or comments