caretaker

Oh, I didn't know that. I thought it was to take our oil to the Gulf of Mexico and load into tankers for China. Natural gas is still cheaper than oil, and America has lots of both, so I'd be interested in seeing how we're going to sell our oil to the US given the current political climate.

Engineer_abroad

Kinder Morgan pipeline in particular is to transport oil and gas to Burnaby/Vancouver for export overseas.

Shakyuk

From what I have read:


As Engineer said, the Kindermorgan is to export to China and others from BC.


Keystone is to increase export capacity to the US as well as connect a number of refining facilities and stores within the US that are either isolated or sit on other pipe systems. In addition to this, along the route of the Keystone pipeline, there's a number of facilities which have expanded refining capability for heavy oil from Venezuela and other SA countries but the supply isn't reliable. So the expanded Canadian capacity will provide a secure supply to maximise the use of this expanded refining capability.

Steve_

The purpose of Keystone XL is to get the bitumen down to the refineries in Texas, the general idea is that it can then be sold more easily in the eastern US as there is long-standing oversupply in the west.

Steve_

OMG this thread sounds like a bar conversation downtown.

caretaker

I didn't realise that; thought the main export oil to the US would be the high-grade from the Bakken Reserve, and the rest would just get refined for overseas, but now I know. I knew Keystone was to connect other systems, but suppose I wasn't thinking of the scope of the demand in the US, and that they'd still have to buy so much even while their own oil industry is suffering from low prices. Evraz North America is tooling up to make the new thicker, large capacity pipe, and that means jobs in Regina and profits in hard currency back in mother Russia. It would be nice to see all the old lines replaced with thicker pipe before they leak, but that isn't likely at $50/bbl.

Steve_

Two diametrically opposed headlines:

Another painful year in Alberta, but NDP sees positive economic signs | Calgary Herald

Canadian oilpatch may defer $19 billion in capex spending if low prices persist: analysts

Right, so somehow it's a positive economic sign when $19 billion of investment is deferred?

And who do you believe? Politicians or people who price oil for a living?