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The Keystone Pipeline Is Quickly Becoming Obsolete
Business Insider ^ | 05/07/2014 | Rob Wile

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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: businessinsider; canada; demagogicparty; energy; keystone; keystonepipeline; keystonexl; memebuilding; partisanmediashill; partisanmediashills; pipeline; robwile

1 posted on 05/07/2014 12:42:39 PM PDT by SeekAndFind
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To: SeekAndFind
Analysts say that spread satisfies market conditions, and leaves Canadian producers in good shape.

And keeps a whole pack of jobs and tax revenue safely out of the United States. Yay.

2 posted on 05/07/2014 12:44:19 PM PDT by kevkrom (I'm not an unreasonable man... well, actually, I am. But hear me out anyway.)
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To: SeekAndFind

This is from the DNC-leaning “Business Insider” so I take it with a grain of salt.


3 posted on 05/07/2014 12:44:22 PM PDT by FlingWingFlyer (Obama's smidgens are coming home to roost.)
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To: SeekAndFind

Joint press release by Warren Buffet and Obama?


4 posted on 05/07/2014 12:45:31 PM PDT by Blood of Tyrants (Haven't you lost enough freedoms? Support an end to the WOD now.)
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To: SeekAndFind

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.


5 posted on 05/07/2014 12:46:18 PM PDT by cicero2k
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To: SeekAndFind

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.


6 posted on 05/07/2014 12:46:22 PM PDT by cripplecreek (Remember the River Raisin.)
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To: SeekAndFind

We need to complete Keystone to drive the last nail into the coffin of the socialist government in Venezuela.


7 posted on 05/07/2014 12:48:57 PM PDT by meatloaf (Impeach Obama. That's my New Year's resolution.)
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To: SeekAndFind
Image and video hosting by TinyPic
8 posted on 05/07/2014 12:50:50 PM PDT by cripplecreek (Remember the River Raisin.)
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To: SeekAndFind

Until the next rail disaster


9 posted on 05/07/2014 12:52:53 PM PDT by NonValueAdded (Operating out of weakness? Imagine if he was working from a position of strength!)
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To: meatloaf

We need to complete Keystone to drive the last nail into the coffin of the muslim extremists that the DNC supports.


10 posted on 05/07/2014 12:53:07 PM PDT by NoLibZone (The bad news: Hillary Clinton will be the next President. The Good news: Our principles are intact.)
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To: cripplecreek

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?


11 posted on 05/07/2014 12:55:20 PM PDT by NonValueAdded (Operating out of weakness? Imagine if he was working from a position of strength!)
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To: kevkrom

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.


12 posted on 05/07/2014 12:57:24 PM PDT by Former Proud Canadian
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To: Former Proud Canadian

But they gained the most important thing of all -

their own self-righteousness.


13 posted on 05/07/2014 12:58:16 PM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

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.


14 posted on 05/07/2014 1:04:06 PM PDT by detective
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To: NonValueAdded
Until the next rail disaster

Among other reasons why reliance on rail is a poor decision for the long run.

15 posted on 05/07/2014 1:18:10 PM PDT by hinckley buzzard
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To: detective

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.


16 posted on 05/07/2014 1:23:54 PM PDT by Eric in the Ozarks (Rip it out by the roots.)
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To: SeekAndFind

The pipeline would reduce the price. Plus it’s still cheaper now. This is BS.


17 posted on 05/07/2014 1:28:09 PM PDT by Williams
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To: Former Proud Canadian

Oh, I hope you didn’t misread my intent - this was the Obama admin getting exactly what they wanted.


18 posted on 05/07/2014 1:31:00 PM PDT by kevkrom (I'm not an unreasonable man... well, actually, I am. But hear me out anyway.)
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To: thackney

Petro Ping.


19 posted on 05/07/2014 1:32:56 PM PDT by Army Air Corps (Four Fried Chickens and a Coke)
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To: thackney

FYI or comments


20 posted on 05/07/2014 1:35:34 PM PDT by deport
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To: SeekAndFind

Bipartisan NIMBY regulators, commies—same thing. They’ll slowly but properly shut up, as real estate continues to fall for 20 years with my generation’s croakfest.


21 posted on 05/07/2014 2:29:17 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: Former Proud Canadian
"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."

Constituents of both political parties push against all such developments. I've lived in several rural, Republican majority counties over the years, and the most influential residents in each of them (mostly local regulatory administrators in partnerships with pensioners) have pushed against energy easements, uranium exploration projects--anything that they perceive as having any possibility of lowering residential real estate values (and property taxes), inviting "downscale" men to work or discouraging elite tourism ("open space" policies and the like).


22 posted on 05/07/2014 2:39:00 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...

Oh look, Obama shill Rob Wile scrawls this at Business Insider.


23 posted on 05/07/2014 2:43:32 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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To: NoLibZone

Blocking Keystone XL is being done to protect Venezuela’s heavy oil exports. The Sultan and his cronies are helping prop up the Marxists in Caracas.

The Canadian oil to the Gulf Coast will be cheaper than the Venezuelan Commie oil imported by tanker.


24 posted on 05/07/2014 3:41:11 PM PDT by Rockpile
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