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Author	Topic: Maybe we don’t need Keystone XL	Post a Reply Back to Topics

Nicoalbum Champion Author Ottawa Posts:6,162 Points:1,215,750 Joined:Jan 2010	Message Posted: Mar 5, 2013 1:42:53 PM Ignore Nicoalbum Report Abuse Crude solutions the bottleneck To the dismay of proponents in Canada, the Obama administration has lately been sounding cool to Keystone XL—even cooler than it did to TransCanada Corp.’s border-hopping oil pipeline just before it got mothballed a year ago. If that’s testing nerves in Ottawa and Edmonton, it’s also stimulating the creativity of U.S. refiners. Many of them, desperate to profit from Canada’s cheap oil, are working feverishly on a Plan B to load bitumen onto railcars, barges and trucks to bring it south to their processing facilities in Texas. Even if Keystone XL is approved it won’t be completed until at least 2015, an unlikely best-case scenario. Meanwhile, pipeline bottlenecks are keeping western Canadian crude trading at roughly half the world oil price. That’s why “peop Visit Canadian Business for full article

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Crude solutions the bottleneck

To the dismay of proponents in Canada, the Obama administration has lately been sounding cool to Keystone XL—even cooler than it did to TransCanada Corp.’s border-hopping oil pipeline just before it got mothballed a year ago. If that’s testing nerves in Ottawa and Edmonton, it’s also stimulating the creativity of U.S. refiners. Many of them, desperate to profit from Canada’s cheap oil, are working feverishly on a Plan B to load bitumen onto railcars, barges and trucks to bring it south to their processing facilities in Texas.

Even if Keystone XL is approved it won’t be completed until at least 2015, an unlikely best-case scenario. Meanwhile, pipeline bottlenecks are keeping western Canadian crude trading at roughly half the world oil price. That’s why “peop
Visit Canadian Business for full article

REPLIES (newest first)Ignore Short Messages

LetemEatCake Champion Author Oklahoma City Posts:5,667 Points:1,229,075 Joined:Mar 2008	Message Posted: Mar 7, 2013 10:53:36 PM Ignore LetemEatCake Report Abuse Proved my point exactly!
drpepperTX Champion Author Texas Posts:9,159 Points:778,875 Joined:Apr 2011	Message Posted: Mar 7, 2013 12:40:58 AM Ignore drpepperTX Report Abuse LOL, the second coming of Christ?? Absolutely not Cakes! The KXL simply makes sense over shipping by rail or trucks, pipelines are simply and statistically much safer for the environment. And after all that should be of great concern, at least it is to me! The Truth shall set you free!!!
LetemEatCake Champion Author Oklahoma City Posts:5,667 Points:1,229,075 Joined:Mar 2008	Message Posted: Mar 6, 2013 10:57:39 PM Ignore LetemEatCake Report Abuse Agree Gvan...a simple answer, too simple for some who think that the XL is the second coming of Christ!
bston Champion Author Oklahoma City Posts:1,950 Points:669,015 Joined:Mar 2011	Message Posted: Mar 6, 2013 7:36:22 PM Ignore bston Report Abuse Too much bureaucracy tied up in this.
gvan Champion Author Chicago Posts:21,749 Points:2,863,015 Joined:Dec 2004	Message Posted: Mar 6, 2013 3:41:05 PM Ignore gvan Report Abuse "Wouldn't it be easier to build a refinery where the oil is rather than build a pipeline?" Here's one possible answer: Some people suggest refining the oil in Canada for export. It might be a good idea in theory, but it’s not really practical. Once refined, there will be over 20 products out of it. Are we going to build 20 plus pipelines or send them by trucks to the US and how is it shipped overseas? At 900,000 barrels a day, that’s over 4,000 truckloads a day.
sjf238 Champion Author Philadelphia Posts:1,215 Points:648,705 Joined:Mar 2011	Message Posted: Mar 6, 2013 11:23:40 AM Ignore sjf238 Report Abuse Let's keep funding our enemies (Venezuela, Iran, Saudi Arabia), and I'm sure China will be more than happy to buy more oil from Canada.
drpepperTX Champion Author Texas Posts:9,159 Points:778,875 Joined:Apr 2011	Message Posted: Mar 6, 2013 10:17:02 AM Ignore drpepperTX Report Abuse "Wouldn't it be easier to build a refinery where the oil is rather than build a pipeline?" ============================ No. Well, easier is a relative term. You see the cost of building one new refinery is double the cost of the KXL for starters. Next the environmental permitting and red tape takes a decade or more from proposal to completion. Then consider the fact that just one refinery would not handle that much oil. That's why it's not so simple Cakes! The Truth shall set you free!!!
USMCturtlehead Champion Author Lexington Posts:2,385 Points:130,425 Joined:Feb 2013	Message Posted: Mar 6, 2013 7:52:16 AM Ignore USMCturtlehead Report Abuse Maybe we don't.
mkohly Veteran Author Chicago Posts:284 Points:27,365 Joined:Sep 2009	Message Posted: Mar 6, 2013 7:37:51 AM Ignore mkohly Report Abuse This pipeline isn't just for Canadian oil..., it is also planned to make it easier to export oil from the Midwest. Once they can export it cheaply, prices in the Midwest will be based on the global market and pump price will skyrocket!
LetemEatCake Champion Author Oklahoma City Posts:5,667 Points:1,229,075 Joined:Mar 2008	Message Posted: Mar 5, 2013 11:43:30 PM Ignore LetemEatCake Report Abuse You make total sense to me endymion! Maybe too simple for some.
nsdp Champion Author San Antonio Posts:1,117 Points:47,990 Joined:Jun 2012	Message Posted: Mar 5, 2013 9:56:07 PM Ignore nsdp Report Abuse As the story notes the refiners are looking for cheap crude. One alternative is to sign long term processing agreements with Latin American countries to process their heavy crude for them at a contract price. Right now that price is 15 cents a gallon higher than refining crude for the US market. What the Canadians and 99% of the posters here have failed to comprehend is that is plan A for refiners because they get their cash immediately and don't have to worry about changes in price affecting inventory and a resulting loss on the bottom line. No risk and a guaranteed profit better than they get out of refining for the US market. And no property taxes on inventory since it is owned by a foreign government who can't be taxed. That saved Valero about $7 million in December at the Corpus Christi refinery. That does not apply to Canadian crude after refining unless Canada owns the products after refining. Given Valero's long track record with Mexico, Canadian crude doesn't fit Bill Kleese's business plan despite what Joe Gorder's comments. Valero will lead the charge to trade surplus US light crude to Mexico for Maya. [Edited by: nsdp at 3/5/2013 9:57:19 PM EST]
endymion All-Star Author New York Posts:964 Points:197,560 Joined:Nov 2012	Message Posted: Mar 5, 2013 9:44:25 PM Ignore endymion Report Abuse Wouldn't it be easier to build a refinery where the oil is rather than build a pipeline?
YaBassa Champion Author Michigan Posts:2,566 Points:543,825 Joined:Nov 2011	Message Posted: Mar 5, 2013 5:41:56 PM Ignore YaBassa Report Abuse Keystone XL promise of plentiful jobs and more oil available is just a baited hook for every sucker to believe. The only thing the pipeline guarantees is $$$$$Billions more for the Koch brothers
kag2010 Champion Author Winnipeg Posts:5,394 Points:1,047,460 Joined:Apr 2010	Message Posted: Mar 5, 2013 4:08:58 PM Ignore kag2010 Report Abuse No we don't,
xgojim All-Star Author Michigan Posts:578 Points:475,245 Joined:Mar 2011	Message Posted: Mar 5, 2013 4:04:09 PM Ignore xgojim Report Abuse Maybe we do!! What a stupid headline.
humblepie Champion Author Toledo Posts:35,298 Points:2,398,095 Joined:Mar 2006	Message Posted: Mar 5, 2013 3:36:08 PM Ignore humblepie Report Abuse build the xl and cancel obamacare for a better america
turboz2012 All-Star Author Charleston Posts:749 Points:398,535 Joined:Feb 2012	Message Posted: Mar 5, 2013 3:20:29 PM Ignore turboz2012 Report Abuse we can use the jobs
ErnieK9LO Champion Author North Dakota Posts:2,811 Points:568,530 Joined:Nov 2010	Message Posted: Mar 5, 2013 3:05:26 PM Ignore ErnieK9LO Report Abuse Stop the pipe line in ND and we can refine it there.
Coco0828 Champion Author Dallas Posts:1,124 Points:186,840 Joined:Aug 2012	Message Posted: Mar 5, 2013 2:50:19 PM Ignore Coco0828 Report Abuse wow
RussianAnya All-Star Author Dallas Posts:703 Points:156,615 Joined:Jan 2013	Message Posted: Mar 5, 2013 2:26:20 PM Ignore RussianAnya Report Abuse Sure
RussianAnya All-Star Author Dallas Posts:703 Points:156,615 Joined:Jan 2013	Message Posted: Mar 5, 2013 2:25:56 PM Ignore RussianAnya Report Abuse Sure
RussianAnya All-Star Author Dallas Posts:703 Points:156,615 Joined:Jan 2013	Message Posted: Mar 5, 2013 2:25:14 PM Ignore RussianAnya Report Abuse Sure
RussianAnya All-Star Author Dallas Posts:703 Points:156,615 Joined:Jan 2013	Message Posted: Mar 5, 2013 2:24:15 PM Ignore RussianAnya Report Abuse Sure
RussianAnya All-Star Author Dallas Posts:703 Points:156,615 Joined:Jan 2013	Message Posted: Mar 5, 2013 2:23:35 PM Ignore RussianAnya Report Abuse Sure
Van_Halen Champion Author Atlanta Posts:2,959 Points:667,045 Joined:Apr 2011	Message Posted: Mar 5, 2013 2:18:05 PM Ignore Van_Halen Report Abuse . The point here is that if Obama had not illegally interfered the Pipeline would already have been built!
teenitup Champion Author Houston Posts:1,841 Points:275,890 Joined:Sep 2012	Message Posted: Mar 5, 2013 2:01:51 PM Ignore teenitup Report Abuse One way or another we need the oil coming south.
doggod Champion Author Anchorage Posts:2,983 Points:768,085 Joined:May 2009	Message Posted: Mar 5, 2013 1:55:33 PM Ignore doggod Report Abuse I confess to being a little baffled why people don't build refineries in Alberta and export the refined product ... via truck or rail or whatever. Must be a reason; maybe it's their own NIMBY greenies, dunno.
Nicoalbum Champion Author Ottawa Posts:6,162 Points:1,215,750 Joined:Jan 2010	Message Posted: Mar 5, 2013 1:43:29 PM Ignore Nicoalbum Report Abuse To be, or not to be - that doesn't matter