Keystone XL

[dan_s]

This is why we need the Keystone XL Pipeline to be approved. Transporting so much oil by rails is very dangerous.

https://news.yahoo.com/derailed-train-v ... ?__fssrc=1

[bearcatbob]

Keystone is an IQ test. Boone Pickens has called Keystone a Christmas present sitting outside the door.

Idiots fail the IQ test. Idiots do not accept presents.

All of that said - are we as oil and gas investors not better off without Keystone?

[dan_s]

Not really. The Canadian are moving forward with developing the oil sands regardless of what we do. If the Feds are so stupid that they never approve Keystone XL then the Canadians will build a pipeline to the west coast and sell the oil to the Chinese. Plans are already in the works and they may build it anyway, just so they only have the U.S. market. If Obama never approves the pipeline, we will loose an opportunity to secure supply from a friendly neighbor.

Also. a lot of Canadian oil will still come into the U.S. by rail, like it is today.

I stress this at all my presentations: The crude oil market is global. There are only small differences between the various markets because crude can easily be loaded on to ships and moved around the globe. Natural gas markets are regional.

This is why increasing U.S. oil production from the shale plays has very little impact on U.S. oil prices. A couple million bbls per day (especially from a net importer like the U.S.) has very little impact on the global oil market that consumes 94 million bbls of liquid fuels each day. The U.S. still imports ~6 million bbls of oil per day and we will NEVER be a net exporter.

[mikelp]

Dan: wondering how much the stock price of some of the Canadian oil sands companies are undervalued due to Canadian transportation issues and the White House holdup on Keystone.... take CVE for an example, it seems like there could be substantial upside there if and when Keystone is approved.

[dan_s]

I agree. GPOR is our Canadian Oil Sands company. Read the profile.