RBC: Keystone XL no longer crucial in energy export strategy


mentalfloss
#1
Inconvenient truth: Keystone XL no longer crucial?

To borrow a movie title and now oft-heard phrase, a Canadian currency analyst has what may be an inconvenient truth for TransCanada Corp.: Its controversial Keystone XL pipeline may no longer be as crucial as it once was.

In a recent report, senior currency strategist Greg Moore of Royal Bank of Canada was actually examining the effect of energy exports, and Keystone in particular, on the Canadian dollar.

“Energy exports are important to CAD through their impact on Canada’s current account balance, terms of trade, and capital investment,” said Mr. Moore, referring to the currency by its symbol.

“While Keystone XL is still a very relevant and important project, it no longer appears to be as crucial as it once did to shaping Canada’s energy export future. Its impact on CAD has thereby likely diminished.”

Keystone XL, of course, is the oft-delayed project that has become a political football and target of environmental activists in the United States.

Canada has been pushing hard for approval of the project, a $5.4-billion pipeline that would carry almost 850,000 barrels of oil from Canada and the northern U.S. to the refining hub on the Gulf Coast.

As The Globe and Mail’s Shawn McCarthy has documented, a decision now probably won’t come before the U.S. congressional elections in November.

“For several years now, Keystone XL (KXL) has been the main focal point of the Canadian energy supply constraint issue,” Mr. Moore noted.

“The project has long been considered one of the few shorter-term solutions, preferred especially because it would bring Alberta’s heavy oil director to the refineries of the U.S. Gulf Coast, where most crude imports from other foreign countries are currently refined,” he added.

Inconvenient truth: Is Keystone XL pipeline no longer crucial? - The Globe and Mail
 
petros
#2
PROCOR and GE have built enough rail tankers to meet the need and Gateway is a go?
 
captain morgan
Bloc Québécois
#3
Quote: Originally Posted by petrosView Post

PROCOR and GE have built enough rail tankers to meet the need and Gateway is a go?

Enbridge line 9 and Energy East are picking up the opportunity.

Funny how the lobby to castrate KXL, in the name of less oil sands oil polluting the globe, has actually resulted in triple the number of pipelines construction/redevelopment projects
 

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