• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 3 hours Science: Only correct if it fits the popular narrative
  • 3 hours Crazy Stories From Round The World
  • 6 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 11 hours EU has already lost the Trump vs. EU Trade War
  • 1 day Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 4 hours China's Renewables Boom Hits the Wall
  • 1 day ''Err ... but Trump ...?'' *sniff
  • 6 hours Do The World's Energy Policies Make Sense?
  • 5 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 5 hours Impeachment Nonsense
  • 1 day Tesla Launches Faster Third Generation Supercharger
  • 10 hours Water, Trump, and Israel’s National Security
  • 1 day Passerby doused with flammable liquid and set on fire by peaceful protesters

Breaking News:

Russia Plans To Boost Crude Oil Exports

Alt Text

Four Ways Oil Has Made Our Lives Better

Fossil fuels are being scrutinized…

Alt Text

Chesapeake Isn’t Dead Yet…

Chesapeake, one of the hardest…

Alt Text

A ‘Latin Spring’ In The Making?

There is a fear within…

Editorial Dept

Editorial Dept

More Info

Premium Content

The Keystone Oil Spill Effect

Friday November 8, 2019

1. Keystone outage boosts Bakken

- The Keystone pipeline is offline because of a significant spill in North Dakota, interrupting around 590,000 bpd of throughput. The outage has depressed prices for Western Canada Select, with the discount to WTI widening to as much as $23 per barrel.

- But the outage has also pushed up prices for Bakken oil, providing a temporary boost to Bakken drillers.

- Meanwhile, rail shipments are expected to rise quickly. “We are expecting crude-by-rail volumes into the south to rise as the Keystone outage has caused Alberta oil prices to decline, and with the province set to grant waivers to production that is shipped by rail from Canada,” Stephen Wolfe, an oil analyst at Energy Aspects Ltd, told Bloomberg.

- Shipping oil by rail requires a WCS-WTI discount of $15 to $20 per barrel in order to break even, according to Scotiabank. That compares to about $10 to $13 per barrel for pipeline. The current discount in excess of $20 per barrel means that rail shipments will likely increase.

2. Private equity’s fortunes in oil

- Private equity became a huge source of capital in U.S. shale in the last few years. The plan for PE is to acquire assets, turn them around, and then sell them a few years later.

- PE funneled more than $64 billion into oil assets since 2015, with $44 billion specifically in the U.S., according to Wood Mackenzie.

- It doesn’t…



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play