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

[QuickHitCurepon]

Oil is security for the U.S. and independence from the Middle East, but Obama does not want that.

 

[DigitalDrifter]

Also, there would have been good paying jobs out of this. Looks like now they'll be Canadian jobs.

 

[QuickHitCurepon]

Maybe it's not too late and Obama can still come to his senses.

 

[reconmark]

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

STOP, STOP...THE FACTS ARE HURTING MY HEAD!!!!!!!

 

[Moonglow]

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

STOP, STOP...THE FACTS ARE HURTING MY HEAD!!!!!!!

And now US oil companies are pushing to allow US oil to be exported...

 

[QuickHitCurepon]

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

That is the plan, but events can change, and that is why we have a strategic oil reserve. If for any reason, the nation needed to and started dipping deeply into the reserve with no way to replenish it in sight, the oil from Keystone would magically all be staying right here in the good ole USA.

 

[Moonglow]

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

That is the plan, but events can change, and that is why we have a strategic oil reserve. If for any reason, the nation needed to and started dipping deeply into the reserve with no way to replenish it in sight, the oil from Keystone would magically all be staying right here in the good ole USA.

We do have a reserve, but normally use US oil..reserves, plus that is why we won't let all US real estate to be drilled upon...

 

[QuickHitCurepon]

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

That is the plan, but events can change, and that is why we have a strategic oil reserve. If for any reason, the nation needed to and started dipping deeply into the reserve with no way to replenish it in sight, the oil from Keystone would magically all be staying right here in the good ole USA.

We do have a reserve, but normally use US oil..reserves, plus that is why we won't let all US real estate to be drilled upon...

What if OPEC stops selling oil to us, because we go to war with too many Middle Eastern countries? We would be screaming for the Keystone oil.

 

[QuickHitCurepon]

Too bad we won't have it thanks to Obama.

 

[Moonglow]

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

That is the plan, but events can change, and that is why we have a strategic oil reserve. If for any reason, the nation needed to and started dipping deeply into the reserve with no way to replenish it in sight, the oil from Keystone would magically all be staying right here in the good ole USA.

We do have a reserve, but normally use US oil..reserves, plus that is why we won't let all US real estate to be drilled upon...

What if OPEC stops selling oil to us, because we go to war with too many Middle Eastern countries? We would be screaming for the Keystone oil.

It seems that we have the biggest oil producers on our side and have embargoes on the hostile ones...

 

[Moonglow]

Too bad we won't have it thanks to Obama.

It is still private property of companies.They will want it sold on the open market to the highest bidder...

 

[QuickHitCurepon]

Too bad we won't have it thanks to Obama.

It is still private property of companies.They will want it sold on the open market to the highest bidder...

If we need it bad enough, and it is coming through our country, I'm sure we could persuade Canada to sell it to us but not after we snubbed them and made them build a incredibly long pipeline twice as long as Keystone that they didn't really want.

 

[QuickHitCurepon]

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

That is the plan, but events can change, and that is why we have a strategic oil reserve. If for any reason, the nation needed to and started dipping deeply into the reserve with no way to replenish it in sight, the oil from Keystone would magically all be staying right here in the good ole USA.

We do have a reserve, but normally use US oil..reserves, plus that is why we won't let all US real estate to be drilled upon...

What if OPEC stops selling oil to us, because we go to war with too many Middle Eastern countries? We would be screaming for the Keystone oil.

It seems that we have the biggest oil producers on our side and have embargoes on the hostile ones...

Nothing can be for sure in the chaotic Middle East.

 

[edthecynic]

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.
​

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.

Now wait just a minute there Slick, it is the CANADIAN oil PRODUCERS who would gain the $50 a barrel and thus it is the Canadian government, not American refineries who would have to PAY $50 more for the crude and they will pass that extra charge in to the consumer thus raising the cost of gas to US Americans.

 

[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.
​

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.

Now wait just a minute there Slick, it is the CANADIAN oil PRODUCERS who would gain the $50 a barrel and thus it is the Canadian government, not American refineries who would have to PAY $50 more for the crude and they will pass that extra charge in to the consumer thus raising the cost of gas to US Americans.

You're confused. Read my comment again.