Trump approves Keystone pipeline and...

UsualName said:
That pipeline was built for the sole purpose of developing Canadian tar sands. We didn’t need the oil and the Canadians weren’t going to build a pipeline across Canada, nor were they going to refine that oil on their land. We’re the suckers in the deal. There is no real benefit to our country to ship and refine that oil here.
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I believe some further context is necessary:
1) The existing refinery capacity for the tar sand oil (with high bitumen content) exists in the U.S. but not so much in Canada. This drives the decision that shipping to the U.S. is the best option. Of the oil that is shipped to the U.S. from Canada all but 0.4% stays in North America & is not re-exported in any form.
2) Over 99% of the Canadian tar sands oil is already shipped to the U.S. - mainly via rail. Building pipelines such as Keystone XL is a much safer option. The oil is still coming to the U.S. (this is not going to change) -- but a pipeline is a much safer transport option than rail.
3) Plans in Canada to build pipelines from Alberta to either the eastern or western coast have been stalled due to regional politics where every province and native American (First Nations) tribe wants to add a tax to every gallon going through the pipeline across their territory -- adding to a sum of over $400 per barrel currently). Keystone XL is a way of Alberta telling politicians in Canada to go stick it where the sun doesn't shine.

One of my previous posts provided some excellent detail on the situation with oil in Canada.
https://www.elitetrader.com/et/threads/canada-does-an-end-run-around-obama.286973/#post-4035068
 
gwb-trading said:
I believe some further context is necessary:
1) The existing refinery capacity for the tar sand oil (with high bitumen content) exists in the U.S. but not so much in Canada. This drives the decision that shipping to the U.S. is the best option. Of the oil that is shipped to the U.S. from Canada all but 0.4% stays in North America & is not re-exported in any form.
2) Over 99% of the Canadian tar sands oil is already shipped to the U.S. - mainly via rail. Building pipelines such as Keystone XL is a much safer option. The oil is still coming to the U.S. (this is not going to change) -- but a pipeline is a much safer transport option than rail.
3) Plans in Canada to build pipelines from Alberta to either the eastern or western coast have been stalled due to regional politics where every province and native American (First Nations) tribe wants to add a tax to every gallon going through the pipeline across their territory -- adding to a sum of over $400 per barrel currently). Keystone XL is a way of Alberta telling politicians in Canada to go stick it where the sun doesn't shine.

One of my previous posts provided some excellent detail on the situation with oil in Canada.
https://www.elitetrader.com/et/threads/canada-does-an-end-run-around-obama.286973/#post-4035068
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These are all excellent points if you’re Canadian.

Yes, Canada is dependent on us to buy their tar sands oil, that’s why they ship 99% to us. We do have the capacity because of our consumption demands and there is much more opposition than just the first tribes.

Look I’m not actually opposed to the pipeline or getting this type of heavy crude from Canada because the alternatives are Venezuela and Nigeria. I don’t think Max ever took the time to read what I was actually saying and had some precanned answer he just kept repeating.

But, don’t insult my intelligence by telling me the shipping tar sands oil through a pipeline somehow changes the impact on the environment of developing and refining the reserves. The oil itself is nasty and I’m concerned about increasing our usage of such oil.

And, another thing, the jobs that was attached when this was a hot button political issue were a lie too.
 
I'm reading conflicting, albeit good arguments on both sides. One says all the oil is going to the export market, the other says it's staying in n. America.

One says the volume capacity is already shipped to the US via rail, the other says the infrastructure is under developed and would likely be abandoned.

My gut says to put my money on money. Companies will likely sell it as a energy security issue, take the subsidies, and do a 180 backed by free market capitalism to sell to other countries. Unless there's a bill in writing of course.

On the flip side, no one is leaving billions of barrels in the ground just because it's hard.
 
I summarize more like this.

1. pipeline is safer than rail or alternatives
2. national security is a big concern... Canada is similar to a domestic source. so it may be going to the international market now... but it might be there for us when we need it.
3. part of the reasons prices are low is because supplies like these are coming to the market.

there were no intelligent arguments against the pipeline that I ever read.
for instance because he owned the rail transport buffett was against the pipeline until he purchased something to do with the pipeline.

the arguments are against the pipeline are really arguments against oil.
 
So there's risk involved.Yeah, there's risk involved in everything. Risk like letting grown men dressed as women take a dump in the ladies room. Don't hear the left bitching about that risk. Little oil on the ground every now and then, or ten year old girl raped in the bathroom? Hmmm, wonder what the left thinks to be worse.
 
CaptainObvious said:
So there's risk involved.Yeah, there's risk involved in everything. Risk like letting grown men dressed as women take a dump in the ladies room. Don't hear the left bitching about that risk. Little oil on the ground every now and then, or ten year old girl raped in the bathroom? Hmmm, wonder what the left thinks to be worse.
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Left left left left left left

Whatabout left left left left

Pay no attention to the right

Because left left left

Can't criticize right with their own words

Because

You got that

LEFT LEFT LEFT

https://twitter.com/x/status/633739970985897984
 
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