When the Keystone XL go tkilled, Canada got serious about it and approved a 900 mile pipeline to move their oil to the west coast for export. That expanded pipeline will come on line soon and that cheap canadian oil that has been helping the US will now be exported directly to more profitable markets in Asia. Fools who thought the killing of the xl would result in less oil production in Canada are being proven wrong again and now the oil will be exported to refineries that do not adhere to the environmental standards that they do in the US. So not only will the oil be exported via ship to faraway markets, the refining of that oil will add more pollution than if done in the US, and the US refineries that need sour oil will have to increase their imports from elsewhere to make the blend for the refinery. people in the midwest and NE should be prepared for a price increase as the canadian oil will now have a larger market to sell to The U.S. Is Spoiled by Cheap Canadian Oil. That’s About to Change (msn.com) Those days are numbered. Canadian oil companies will soon have the option to ship crude through a long-delayed, 715-mile pipeline expansion to the Pacific Ocean. That will allow traders to sell more oil to the U.S. West Coast and to fast-growing Asian economies. The Trans Mountain expansion, which will nearly triple the capacity of an existing pipeline to 890,000 barrels a day, promises to give Canadian companies more pricing power and boost the country’s position as a global energy powerhouse. “This is a big deal that’s been 10 years in coming,” said Kevin Birn, an analyst with S&P Global Commodity Insights. “It does allow Canada, for the first time in its history, as the fourth-largest oil producer in the world, direct access to international markets.” That could come at the expense of Canada’s largest trading partner. Americans guzzled Canadian oil even as U.S. crude output ballooned in recent years, turning Canada into an export juggernaut. Imports from north of the border surpassed 4 million barrels a day some months last year, U.S. officials say, nearly two-thirds of total shipments.
Another trans thread? Jeez. Also I thought the XL thing was over environmental concerns, not reducing production. All the people that supported the pipeline were like "trains are more dangerous huh huh" ... but with a new pipeline there wont be more trains transporting oil will there?
So, since the Canadian pipeline project was moving ahead regardless of the outcome of the Keystone Pipeline IV, it is a really good thing the US did not invest in yet another Keystone pipeline since it now appears less oil will be moving from Canada to the midwest refineries?
It wasn’t even going to go to Midwest refineries - it would have been refined on the gulf coast and more than 2/3rd exported overseas. The amount of oil exported from our refineries has been constantly increasing too. So the Keystone XL proposition was to run billions of barrels of oil in a pipeline that will leak, because they all leak, to refineries on our gulf coast that are heavy polluters, and then ship an ever growing percentage of that refined oil overseas. I don’t find it particularly compelling.
Bummer, I thought this was going to be another Bud Light like thread. Or maybe a bathroom or a man swimming against women thing.
the canadian pipeline expansion was stuck in permitting that wasn't going anywhere if they had an alternate route. when the xl failed, political pressure to create a path to the sea pushed the expansion to the west. if the xl happened, the westward expansion wouldn't have happened
the midwest refineries do import a lot of oil from Canada. Oil that used to come at a discounted price due to costs to get oil to other markets. that discount will be significantly reduced do our refineries pollute more or less than those in the far east where the oil will go now? does refining and jobs add income to our economy? this should open up new sources for California refineries though. with Jones act, alaska oil goes to the far east and Cali imports oil from KSA, Ecuador, Brazil, Iraq. I guess that could be a win if Cali starts importing from Canada and more bakken oil goes to the Midwest.
I agree with everything you said, but it goes beyond just the Keystone IV or XL. The implication from the right-wing fear mongers at the Wall St Journal who were quoted in the OP was that the other 3 Keystone pipelines currently moving Canadian oil to Oklahoma and Illinois we see decreased volumes as Canadians ship their oil over seas without transiting through the US, and thus commanding higher prices for all of their oil.
The assertion that Tar sands oil is “cheap” needs some context. It is generally fairly expensive to extract and is not profitable when oil prices go below 50-60 per barrel. It is “cheap” for refiners as it is lower quality and sells for a discount. Tar Sands Challenges - Oil Change International.
