Keystone Be Darned: Canada Finds a Surprise Pipeline Route Bypassing Obama

[DigitalDrifter]

Great job Obama !

So you're the Canadian oil industry and you do what you think is a great thing by developing a mother lode of heavy crude beneath the forests and muskeg of northern Alberta. The plan is to send it clear to refineries on the U.S. Gulf Coast via a pipeline called Keystone XL. Just a few years back, America desperately wanted that oil.

Then one day the politics get sticky. In Nebraska, farmers don't want the pipeline running through their fields or over their water source. U.S. environmentalists invoke global warming in protesting the project. President Barack Obama keeps siding with them, delaying and delaying approval. From the Canadian perspective, Keystone has become a tractor mired in an interminably muddy field.

More from Bloomberg.com: Keystone Be Darned: Canada Finds Oil Route Around Obama

In this period of national gloom comes an idea -- a crazy-sounding notion, or maybe, actually, an epiphany. How about an all-Canadian route to liberate that oil sands crude from Alberta's isolation and America's fickleness? Canada's own environmental and aboriginal politics are holding up a shorter and cheaper pipeline to the Pacific that would supply a shipping portal to oil-thirsty Asia.

Instead, go east, all the way to the Atlantic.

More from Bloomberg.com: Buffett Says ‘No-Brainer' to Get a Mortgage to Short Rates

Thus was born Energy East, an improbable pipeline that its backers say has a high probability of being built. It will cost C$12 billion ($10.7 billion) and could be up and running by 2018. Its 4,600-kilometer (2,858-mile) path, taking advantage of a vast length of existing and underused natural gas pipeline, would wend through six provinces and four time zones. It would be Keystone on steroids, more than twice as long and carrying a third more crude.

Supertanker Access

Its end point, a refinery in the blue-collar city of Saint John, New Brunswick, operated by a reclusive Canadian billionaire family, would give Canada's oil-sands crude supertanker access to the same Louisiana and Texas refineries Keystone was meant to supply.

Keystone Be Darned Canada Finds a Surprise Pipeline Route Bypassing Obama - Yahoo Finance

 

[DigitalDrifter]

So as I figured from the start, this would happen one way or another. Now it looks like America won't get the jobs, or a piece of the pie.

Nice going libs, I knew your whining wouldn't stop this kind of money to be made, and now if this happens, we won't even be able to administer the enviromental protections.
Good job.

 

[Toro]

Yup.

It's about as surprising as the sun rising in the east each morning.

I'm sure the Tom Steyer gang of environmentalists are happy!

 

[LiberalMedia]

Great job Obama !

In Nebraska, farmers don't want the pipeline running through their fields or over their water source.

So you're angry at our nation's greatest president because he doesn't want to force American citizens to suffer oil pollution on their fields (which grow crops that other Americans eat) or in their water (which they drink and bathe in, not to mention watering the afore-mentioned crops with).

Just when I thought you racists couldn't get any more absurd, you're pissed at President Obama for not wanting to literally, literally, poison the well (and the field along with it) for the enrichment of a few Canadian billionaires.

 

[DigitalDrifter]

Great job Obama !

In Nebraska, farmers don't want the pipeline running through their fields or over their water source.

So you're angry at our nation's greatest president because he doesn't want to force American citizens to suffer oil pollution on their fields (which grow crops that other Americans eat) or in their water (which they drink and bathe in, not to mention watering the afore-mentioned crops with).

Just when I thought you racists couldn't get any more absurd, you're pissed at President Obama for not wanting to literally, literally, poison the well (and the field along with it) for the enrichment of a few Canadian billionaires.

I was hoping the pipeline would be shoved up Obama's ass. Black gold pumped into a black hole.

 

[Moonglow]

None of the refined oil was destined for the US, it was to be sold overseas..

 

[Hossfly]

Great job Obama !

In Nebraska, farmers don't want the pipeline running through their fields or over their water source.

So you're angry at our nation's greatest president because he doesn't want to force American citizens to suffer oil pollution on their fields (which grow crops that other Americans eat) or in their water (which they drink and bathe in, not to mention watering the afore-mentioned crops with).

Just when I thought you racists couldn't get any more absurd, you're pissed at President Obama for not wanting to literally, literally, poison the well (and the field along with it) for the enrichment of a few Canadian billionaires.

Just think, Libby, of all the money that Obamessiah just pissed away that would have given his deadbeats more wellfare money and food stamps. The well is about to dry up when taxpayers are outnumbered by the moochers. Should have gotten the pipeline.

 

[bendog]

Good.

 

[TooTall]

None of the refined oil was destined for the US, it was to be sold overseas..

Adding to the world's oil supply brings down the price. Simple supply and demand logic. A lower price for oil deprives those in the middle east that want to kill us a little less money. That would be a good thing.
And, I would need a link to believe that ALL of the oil the pipeline was bringing to the refineries on the US Gulf coast would be sold overseas.

 

[Rikurzhen]

Why ship the oil clear across Canada to New Brunswick, only to ship it by tanker down the Eastern Seaboard into the Gulf of Mexico and then to the Louisiana and Texas refineries? That's 3,553 nautical miles. Why not ship it straight to Europe, to a refinery at Bilboa 2,273 nautical miles or to La Houle in France at only 2,090 nautical miles.

 

[Rikurzhen]

Canadian oil sold into the US via pipeline means that Canada had only one buyer and so gets less than world prices. See here:

The issue is writ large in the price differential between West Texas Intermediate (WTI) and Brent crude. Although WTI is often quoted in North America as the price of oil, Brent is actually the global benchmark for crude. Unfortunately for Canadian producers, lately the spot price of Brent has been as much as $25 a barrel higher than that of WTI.

While Canadian oil sands producers are the main victims of this price gap, they’re also, somewhat ironically, its principal cause. Without more pipeline infrastructure to offload oil to other markets, oil sands crude, as well as shale oil from the Bakken play in North Dakota, has no where else to go. More production from these places only boosts supply, further lowering the price of WTI.

Aside from a few hundred thousand barrels a day from wells offshore Newfoundland that get Brent prices, virtually all of Canada’s 2.4 million barrels a day are priced off WTI.

An even bigger concern for Canadian oil producers than the discount between WTI and Brent is the price differential between WTI and Western Canadian Select—the benchmark price for western Canadian oil exports to the US. It’s trading around $60 a barrel, a third less than WTI and 45 percent lower than Brent.

Do the math on some 2 million barrels a day of heavily discounted oil exports and suddenly you’re talking about an enormous wealth transfer from Canadian oil producers to American refineries.

Do the math on some 2 million barrels a day of heavily discounted oil exports and suddenly you’re talking about an enormous wealth transfer from Canadian oil producers to American refineries. (Note, the subsidy is pocketed by US refiners, not motorists, who don’t see the Canadian discount when filling up at the pumps.) What if Canadian oil was getting world prices? At the current Brent-Western Canadian Select spread of roughly $50 a barrel, you’re in the neighbourhood of $100 million a day. That equates to foregone revenues of more than $35 billion over the course of a year.
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So the smartest man in the world didn't want to bring Canadian oil into the US refinery market where the price differential would be taxed and benefit the nation. Look at that HUGE differential that Western Canadian oil faces when they have only ONE buyer, the US? No matter how much interest, China or Japan or Australia or India or Europe have in buying Alberta's oil, there is no way to get the oil from Alberta to their refineries. Sucks for Canada that the only refineries who could buy the oil are in the US.

Until Einstein-Obama gives Canadians enough of an incentive to build a pipeline to their West Coast and now to their East Coast. Now they can sell at Brent prices to everyone. Existing profit of $35 billion which was taxed in the US could now go to Canada as they sell to the world at world prices.

Thanks liberals.

 

[R.C. Christian]

Good news. Canada can fuck itself. The only reason CanadUH wanted to pipe it through the US is because their own environmentalists didn't want to pipe the toxic shit through the forests. The U.S is not Canada's little bitch that ships that crap to commie dogs in Beijing.

 

[Toro]

Why ship the oil clear across Canada to New Brunswick, only to ship it by tanker down the Eastern Seaboard into the Gulf of Mexico and then to the Louisiana and Texas refineries? That's 3,553 nautical miles. Why not ship it straight to Europe, to a refinery at Bilboa 2,273 nautical miles or to La Houle in France at only 2,090 nautical miles.

The crude will be refined in Quebec and New Brunswick. It will then be shipped elsewhere.

 

[Toro]

Good news. Canada can fuck itself. The only reason CanadUH wanted to pipe it through the US is because their own environmentalists didn't want to pipe the toxic shit through the forests. The U.S is not Canada's little bitch that ships that crap to commie dogs in Beijing.

The crude will be shipped right across Canada, dumbass.

 

[R.C. Christian]

Good fag. I hope the pipeline breaks and poisons the place.

 

[Hossfly]

Good fag. I hope the pipeline breaks and poisons the place.

You are a tree hugger just for the hate?

 

[tinydancer]

Oh yeah. Pull out the "Canada needs to pipe oil to the Gulf of Mexico to ship it to China" card.

 

[R.C. Christian]

If you want to see what happens after a pipeline breaks then you should visit Mayflower AR. No fly zones, media lockouts, corporate intimidation, police intimidation, and no civil liberties around the site. And at the end of they day, the corporation makes bank, and the civilians get the shaft.

I don't want that low grade, half assed Canadian sewage running anywhere near my state and if you people have a problem with that then you may pretend that your monitor is my head and start pounding away.

Sincerely: The Tree Hugger.

 

[tinydancer]

There's already a Keystone I and a Keystone II. Routes go from Alberta to Illinois and Oklahoma.

And there are millions of miles of pipeline crossing all of America.

 

[QuickHitCurepon]

Obama does not want us to prosper.