Status of Keystone XL?

[chuckChuck]

The integrated oil companies that refine heavy oil get a nice WCS discount which allows them to be more profitable. Even in the downturn integrated companies in Alberta that refine have still been profitable.

In a carbon restrained world oil will still be available as a feed stock for chemicals and manufacturing.

What happens to all the heavy oil in Alberta? That's a good question? Are institutional investors putting all their eggs in the heavy oil basket, with in some cases, a very long period before a return on investment? I don't think so. Any proposed developments that do not look profitable for the foreseeable future wont get done.

The two biggest issues that have affected the oil market have been increased production in the US and a fall in demand and prices in the world because of lower economic growth. This has affected all oil producers.

[TOM4CWB]

From the BBC:
Trudeau conveys Keystone pipeline 'disappointment' to Biden
Published 10 hours ago
Canadian PM Justin Trudeau expressed "disappointment" at Joe Biden's decision to cancel the Keystone XL oil pipeline during the new US president's first call to a foreign leader.
Two days into the job, President Biden spent 30 minutes on the phone with Mr Trudeau on Friday evening.
The PM's office said they found shared values on issues like climate change, global leadership and diversity.
The US and Canada enjoy one of the world's largest trade relationships.
Nearly $2bn (C$2.5bn) in goods and services are exchanged between the US and Canada every day.
What did they discuss?
The Canadian prime minister's office said the pair discussed a range of issues, including "working closely together to defeat" the Covid-19 pandemic.
"The prime minister raised Canada's disappointment with the United States' decision on the Keystone XL pipeline," a statement said. "The prime minister underscored the important economic and energy security benefits of our bilateral energy relationship as well as his support for energy workers."
On President Biden's side, a White House statement about the call said: "The president acknowledged Prime Minister Trudeau's disappointment regarding the decision to rescind the permit for the Keystone XL pipeline, and reaffirmed his commitment to maintain an active bilateral dialogue and to further deepen co-operation with Canada."
More than 1,000 construction jobs will be lost in the coming weeks due to the cancellation, pipeline builder TC Energy Corp has said.
Biden 'to cancel Keystone pipeline on first day'
Trump's Trudeau jibes bring Canadians and Americans together
World leaders hope for 'new beginning' under Biden
Despite the two leaders' minor disagreement, they plan to meet next month.
They also discussed expanding co-operation on defence matters and working together in the Arctic region, as well as the "arbitrary detention" of two Canadians - Michael Kovrig and Michael Spavor - in China, Mr Trudeau's office said.
It also said he urged his US counterpart to remove tariffs on softwood lumber - duties that were introduced under Mr Biden's predecessor, President Donald Trump.

media caption"This has been a hard fight for over 10 years"
Ahead of the call, Mr Trudeau told reporters he was "very much looking forward to working with President Biden".
The PM hailed Mr Biden's arrival as a "new era" for bilateral ties.
What's happening with the Keystone pipeline?
On his first day in office, Mr Biden signed an executive order revoking the permit for Keystone XL. The pipeline was meant to carry some 830,000 barrels of heavy crude oil each day from fields in Alberta, Canada to the US state of Nebraska, to join an existing pipeline.
Native American groups and environmental advocates have fought the project for more than a decade. But Canadian officials have long pushed for the controversial pipeline, a boon for the country's oil industry.
Mr Trudeau himself raised the pipeline as a top priority in a call with Mr Biden in November, trying to make the case for going forward with the project.
Alberta Premier Jason Kenney has called the cancellation an "insult" and a "gut punch" and has urged Mr Trudeau to consider retaliation. Mr Kenney's provincial government invested some $1.5bn in the project last year.
But it's considered unlikely that Mr Trudeau will take strong action in response. In a statement following Mr Biden's keystone decision, Mr Trudeau said he "welcomed the president's commitment to fight climate change"....https://www.bbc.com/news/world-us-canada-55773243

[dmlfarmer]

The Beaverton

Jason Kenney thanks Biden for giving him new thing to blame all of Alberta’s economic woes on
2 DAYS AGO by IAN MACINTYRE(@MRIANMACINTYRE)

Photo Credit
EDMONTON – Following incoming President Joe Biden’s decision to scrap approvals for the Keystone XL pipeline, Alberta Premier Jason Kenney called Biden to personally thank him for “basically writing every angry speech I’ll give for the next 5 years”.

“Not gonna lie, I really needed this win,” explained a previously-beleaguered Kenney. “Given my utter mismanagement of the vaccine rollout and Alberta’s economy cratering, I really just needed a good old-fashioned external enemy to blame all of my constituents’ woes on.”

“Even better, Joe Biden has literally never heard of me, so it’s not like I’ll actually have to talk to him or stand up to him ever in public,” beamed the newly-enthusiastic Albertan Premier.


With the Premier having invested millions of Albertan dollars in the uncompleted $8 USD pipeline, all despite the incoming Biden Administration clearly signalling their intent to cancel the project on day one, sources report that Kenney was “getting pretty desperate”.

“He looked like a man on Death Row, and just kept muttering ‘2023… 2023…’ over and over again,” explained one staffer, referring to Alberta’s next provincial election. “But as soon as Biden gave him the gift of becoming an all-purpose bad guy to blame all his legislative failures on, Premier Kenney was overjoyed. I think I even saw him do a cartwheel.”

Kenney reportedly offered his staff to send Biden a thank you bouquet of Alberta wild roses, along with a note explaining who Jason Kenny is and where Alberta is located. “When someone hands you a political gift like this, it’s important to show appreciation.”


Kenney added, “But also not show so much appreciation that you get on their radar and suddenly have to answer questions or talk to them in public.”

The Premier then returned to provincial business, outlining a bold “Blame Biden” campaign to address Albertans. This campaign is meant to explain to Albertans how all of the problems they are currently facing, “from unemployment to oil prices to this season of the Bachelor only being okay” are actually the fault of the incoming Biden Administration.

“And Trudeau, probably,” Kenney added, still smiling from ear to ear.

At press time, Premier Kenney has reportedly celebrated Biden taking all the blame for Keystone XL’s cancellation by purchasing 5 more pipelines.

https://l.facebook.com/l.php?u=https%3A%2F%2Fwww.thebeaverton.com%2F2021% 2F01%2Fjason-kenney-thanks-biden-for-giving-him-new-thing-to-blame-all-of-albertas-economic-woes-on%2F%3Ffbclid%3DIwAR2VgVL4iHihkR5ActwUCEGEmw7voRa zDOGVJv5J4C-X9FubOYGckqTQNuA&h=AT2REk28FWkIHKppIvchZ1ksaTZXIWi HcxbuzFHmls9GdMFu0xYaMnfjFdc586HuVIsJQaT7CzBDFprLO vIx6fZZDrw_i8hus13ExW4PEQ8lb7c3P9D8vXnV_Szf-tslBjJc-2xIHGsh&__tn__=R]-R&c[0]=AT2AOcqtcFTiEJZC5sDRYgjBWTkYHZn-7IVhpvPwfvD8X2O_jrwHPjnBY-RHwMnR4ldSmlvj73P2N-lLkp1uhpWNMoydv7gwE5vfI3TQq2WSRcHOzM-KXzm5WYvCB8CNXRt2MD3o0z2xKXrcwrpj7pf45vqfe1mWLsGSB HaH6_c-5jUGdonGyNI https://l.facebook.com/l.php?u=https%3A%2F%2Fwww.thebeaverton.com%2F2021% 2F01%2Fjason-kenney-thanks-biden-for-giving-him-new-thing-to-blame-all-of-albertas-economic-woes-on%2F%3Ffbclid%3DIwAR2VgVL4iHihkR5ActwUCEGEmw7voRa zDOGVJv5J4C-X9FubOYGckqTQNuA&h=AT2REk28FWkIHKppIvchZ1ksaTZXIWi HcxbuzFHmls9GdMFu0xYaMnfjFdc586HuVIsJQaT7CzBDFprLO vIx6fZZDrw_i8hus13ExW4PEQ8lb7c3P9D8vXnV_Szf-tslBjJc-2xIHGsh&__tn__=R]-R&c[0]=AT2AOcqtcFTiEJZC5sDRYgjBWTkYHZn-7IVhpvPwfvD8X2O_jrwHPjnBY-RHwMnR4ldSmlvj73P2N-lLkp1uhpWNMoydv7gwE5vfI3TQq2WSRcHOzM-KXzm5WYvCB8CNXRt2MD3o0z2xKXrcwrpj7pf45vqfe1mWLsGSB HaH6_c-5jUGdonGyNI

[shtferbrains]

Real funny hey dml?

[Oliver88]

Real funny hey dml?

Oh yes dml and Chuck find all kinds of humour in energy project cancellations. This ultimately leads to job losses, suicides, kids in poverty.

Liberals don’t care.

[Oliver88]

Enbridge has a little secret in store for xiden. F him and skippy too.

https://energi.media/markham-on-energy/enbridge-may-have-500000-b-d-solution-to-albertas-pipeline-crisis/ Enbridge may have 500,000 b/d solution to Alberta’s pipeline crisis

Interesting video and article. This should be good for Enbridge shares long term.

[fjlip]

Xiden such a smart caring POS...Unions might get rid of the TRAITOR

[jazz]

Use the railways as an example to what happens to critical infrastructure when its not expanded. It becomes almost priceless.

All the trucking and cargo jets in the world didnt put CN out of business because someone finally realized hauling heavy stuff is most efficient by rail. And now that another rail line will never be built again in the country, that stock has never stopped going up.

Same thing will happen to the remaining pipelines in the ground. All the solar and wind mills wont put them out of business either because oil will never go away. Our politicians have ensured that now.

Oil will be triple digits again.

[AlbertaFarmer5]

.

Oil will be triple digits again.

The question is, at which end of the pipeline will that value occur? It won’t Be in favor of the producers, or the consumer's.

[chuckChuck]

https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-even-without-keystone-xl-us-set-for-record-canadian-oil-imports/ https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-even-without-keystone-xl-us-set-for-record-canadian-oil-imports/

Even without Keystone XL, U.S. set for record Canadian oil imports
Nia Williams and Devika Krishna Kumar
CALGARY and NEW YORK
Reuters
Published 2 days ago
Updated January 22, 2021

The Keystone XL pipeline project may be dead, but the United States is still poised to pull in record imports of Canadian oil in coming years through other pipelines that are in the midst of expanding.

U.S. President Joe Biden canceled Keystone XL’s permit on his first day in office Wednesday, dealing a death blow to a long-gestating project that would have carried 830,000 barrels per day of heavy oil sands crude from Alberta to Nebraska.

Environmental activists and indigenous communities hailed the move, but traders and analysts said U.S.-Canada pipelines will have more than enough capacity to handle increasing volumes of crude out of Canada, the primary foreign supplier of oil to the United States.

Currently, Canada exports about 3.8 million bpd to the United States, according to U.S. Energy Department data. Analysts expect that to rise to between 4.2 million and 4.4 million bpd over the next few years. Pipeline expansions currently in progress will add more than 950,000 bpd of export capacity for Canadian producers before 2025, according to Rystad Energy.

Canada’s Energy Regulator says there is enough capacity currently to export more than 4 million bpd to the United States.

Biden’s administration has set a goal of moving towards decarbonization and reducing the country’s reliance on oil and gas and cutting harmful air pollutants. Most of the nation’s energy still comes from fossil fuels.

“Whatever limited benefit that Keystone was projected to provide now has to be obviously reconsidered with the economy of today,” said Gina McCarthy, Biden’s leading domestic climate policy coordinator at the White House.

Even without Keystone, however, the United States now relies on Canada for more than half of its imported oil. Several of the lines carrying that crude are in the midst of expansions.

Enbridge Inc’s Line 3 replacement project is in the process of doubling its capacity, which will allow it to deliver about 760,000 bpd of crude from Alberta to Superior, Wisconsin, by the end of this year.

Canada’s government is also expanding the state-owned Trans Mountain line by 590,000 bpd to 890,000 bpd. That line terminates at the Port of Vancouver, where it should be able to deliver barrels via tankers to the United States.

Meanwhile, TC Energy received U.S. approval last year to expand its existing Keystone 590,000-bpd line - located far from the proposed Keystone XL - which would add an additional 170,000 bpd into the U.S. Midwest and Gulf Coast.

“We will be over-piped assuming the other pipelines go ahead on schedule,” said Wood Mackenzie research director Mark Oberstoetter. “If you add them all up, you can make the argument KXL was not needed.”

Construction underway on Trans Mountain and Line 3 could still be held up by environmental protests, but unlike Keystone XL, both pipelines have cleared legal and regulatory hurdles.

Oil production in western Canada will rise in 2021 to a new record of 4.45 million bpd, RBN Energy estimates, up from 3.9 million bpd in 2020, most of which will be exported to the United States.

Canada is the world’s fourth-biggest crude producer, but has been grappling for years with congestion on pipelines. That caused a glut of oil in storage tanks in Alberta, driving prices down, and spurring the province to impose production curtailments to drain record inventories.

Those curtailments were lifted in November, and production has been rising ever since. Even as production is rising again, pipeline companies have boosted efficiency on existing pipelines through the use of drag-reducing agents.

“While the politics around KXL will continue to reverberate for some time, the reality is that western Canada - for the first time in recent memory - may soon reach a juncture at which it has excess oil export capacity,” Rystad Energy’s vice president for North American shale Thomas Liles said in a note.

[jazz]

Ha chuck, how much do you know about the oil industry except what cbc tells you.

KXL had a avenue to US gulf coast so some of that crude to be refined and/or tankered out to world markets.

It wasnt supposed to go all to the US. Called a swing market which closes the heavy differential spread thus increasing the value of Canadian product without us having to invest in refining here and bypassing unfriendlies like BC and Que.

You are massively uninformed.

[chuckChuck]

So why are Kenney and Moe so mad about the loss of the planned KXL? Since they should know we will have enough pipeline capacity in the works, it looks like political grandstanding and theatre.

And how do you blame Trudeau and the Liberals when they rescued TMX?

Alot of what Moe and Kenney say is pure politics designed to stir up resentment.

[chuckChuck]

Reuters is the one quoting industry analysts saying there is enough pipeline capacity in the works.

TMX will allow Canadian oil to be shipped to the US or anywhere the market wants it.

Jazz, You should stick to political and pandemic forecasting! Your record speaks for its self! LOL

[shtferbrains]

So no need to ship all those unit trains of crude at much higher prices and much higher risk?

[bucket]

Alot of what Moe and Kenney say is pure politics designed to stir up resentment.

It doesn't take alot of brains to understand the value of a pipeline....people that resent this have jobs and brains and know who is footing the bill for this...