Keystone Pipeline (merged)

[Tero]

It is used in big engines that are on ocean going ships. That leaves more regular diesel for trucks on the road.

I have a blog entry on the tar sands now.
http://esapolitics.blogspot.com/2017/11 ... at-is.html

[Tyrannical]

https://oilprice.com/Energy/Crude-Oil/K ... rtain.html
I, for reasons I can't explain, regularly like reading the news articles on oilprice.com

Originally, the US needed the pipeline to get more Canadian oil. We don't need that so much now.

In the intervening years since TransCanada originally proposed Keystone XL, U.S. oil production has grown by more than 80 percent, from just over 5 million barrels per day to about 9.6 mb/d today. There has also been a massive buildout of oil pipelines in the U.S., taking crude from the Bakken and the Permian to refineries on the East and Gulf Coasts. The urgent need for Keystone XL is questionable.

Canada needs pipelines to get oil to market, and are selling at a discount.

For Canada, however, the need for pipelines is more evident than ever. Western Canada Select (WCS), a benchmark for heavy crude from Alberta, routinely trades at a discount to WTI (West Texas intermediary oil). However, that discount has worsened because of pipeline bottlenecks. Bloomberg Gadfly points out that there is a shortage of pipeline capacity from Canada equivalent to about 330,000 bpd this year, a deficit that will balloon to 700,000 bpd by 2019 as more oil sands projects come online at a time when all major pipeline projects have suffered from serious delays. WCS is now trading at a massive discount even to heavy crude from Mexico – the latter has a much easier time getting to refineries in Texas and Louisiana.

Two other options besides Keystone.......

The only options for Canada’s oil producers are the Trans Mountain expansion, which will triple the line’s existing capacity from 300,000 to 890,000 bpd, taking Alberta to Canada’s Pacific Coast and Enbridge’s Line 3 expansion to Wisconsin, which will boost the pipeline’s capacity and is much more likely to move forward. The third and last option for Alberta is Keystone XL

But don't need all three.

“We definitely need two of these pipelines by around 2025 and after that it depends on the supply outlook,” Mark Oberstoetter, an analyst with Wood Mackenzie, told Reuters earlier this year. “There’s not an evident need to get three or four pipelines built.”

[mistermack]

When they are talking about a pipeline deficit, the make it sound like there is no way to cut production.

You would think that if you can't shift it, you would simply slow down extracting it.

It's amazing how quickly people get dependent on oil. If Canada had never had it, they would still manage.
Maybe the people who bought into it overreached themselves with the contracts.

[Tero]

The business side of it is that the oil becomes too expensive if you have too many start ups and shut downs. Once you’ve built the pipe and put in the extraction plant, you have to keep producing. These are calculated based on some 20 years.

The bigger chunk of the oil you have , the more you can control the regional market. Sometimes they stock up on the diesel fuel and don't sell. Like grain silos.

[mistermack]

I think as far as the world market goes, an awful lot depends on what Russia decides to do.
Their dependence on the oil price is reducing, as they diversify into other industries and cut down on imports.

Places like Iraq and Texas have also had temporary problems, that should be ironed out fairly soon.
So the prospects are for more oil, at a lower price, in the medium term. Maybe that's why the big users are running down stocks at the moment. They foresee a prospect of cheaper replacement shortly.

[Tero]

Pipeline leak was construction error 10 years earlier
https://www.npr.org/sections/thetwo-way ... gators-say

[Forty Two]

Only if you let rail out of control. Design better tank cars.

Pipelines are only worse if you let them out of control. LOL.

[Forty Two]

Only if you let rail out of control. Design better tank cars.

But you have to compare upgraded rail to upgraded pipe, and then pipe still comes out ahead.

Trains seem wasteful. They have to do the return trip, going back the same route empty.

And, additional maintenance, and they tend to run through populated areas.

[Forty Two]

The Nebraska passed the pipe permit but not with the route Transcanada requested. "Submit new route please."
The dotted line is not going to go there. across the major aquifer. it can go on the S Dakota part to the right over to the yellow line and follow it for the NE part. I suggest they put it right thru the capitol Pierre.
[ifit]

The dotted line actually brought it closer to Pierre than the other line.

[Tero]

Fine, Pierre it is.

[Tyrannical]

Because I like oilprice.com

https://oilprice.com/Energy/Crude-Oil/U ... kness.html

But most of the U.S. oil production is light tight oil, and American exports—especially those of very light sweet crude—may hit a demand constraint next year.

Last year, 51 percent of the 8.4 million bpd of crude oil produced in the Lower 48 States was light oil, or less dense oil with an API gravity of 40.1 or above, EIA data shows. The higher the API gravity, the lighter the oil. So far this year, much of the lower 48 states’ crude oil production had 30.1 or higher API gravity.

The solution is to blend with heavier Canadian oil, delivered via pipeline.

Also, consumption of various oil products outside the U.S. “argue for processing middle-gravity crudes such as Arab Light, Iranian Light and Russian Urals, rather than extra-light barrels such as 48°API gravity Eagle Ford,” Barnes said.

Import data about U.S. crude sales in some Asian market suggests that Japan and India, for example, aren’t looking for extra light barrels from the U.S. Japan’s crude oil imports from the U.S. have a weighted average API gravity 36.9, Barnes writes, quoting data by the Petroleum Association of Japan. India, for its part, is said to have recently imported WTI and Southern Green Canyon, whose API gravity is 40 and 28, respectively.

[Tero]

Big Government (Trump) files report supporting Foreign (Canada) company ruining American farm land.
http://www.1011now.com/content/news/Rep ... 57171.html
What happened to America first?

[Tero]

Judge halts pipeline
https://www.cnn.com/2018/11/09/politics ... index.html

[Animavore]

Good.

[Jason]

Yeah, what does the US want with $30/barrel Canadian oil anyway?