• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 13 mins Buy IELTS, IDP TOEFL, GMAT, ESOL, DEGREE, DIPLOMAS WhatsApp............+237(683)(483)(021)
  • 2 hours Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 56 mins Hydrogen FTW... Some Day
  • 2 days Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 16 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 1 day Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 15 hours Emmissions up, renewables nowhere
  • 1 day Plants are Dying
  • 2 days The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 days We Are Better Than This
  • 2 days (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 2 days Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
Putin’s $40 Oil Lie

Putin’s $40 Oil Lie

Much has been made of…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Is Keystone XL Vital for the Growth of Canada’s Oilsands?

Obama’s decision on the Keystone XL pipeline will have a far greater effect on Canada’s oilsands than TransCanada believes, according to the Canadian Association of Petroleum Producers.

Due to the constant delays in the build up to receiving a decision on the approval of the Keystone XL pipeline that will carry bitumen from Alberta to refineries on the Gulf Coast, TransCanada invested in other projects in order to spread its risk and reduce the importance of the pipeline from accounting for 32% of all its future projects to just 14%.

By spreading its risk over more projects, TransCanada has protected itself from the possibility that Obama will decline a permit for the Keystone XL, however there are many other Canadian oil companies that are still heavily relying on the project. Canadian Natural Resources Ltd., has already booked to transport 120,000 barrels a day of its crude along the pipeline, and in order to supply this volume it intends to increase production by 14% by next year. Suncor Energy Inc. also plans to increase production by 10% as it looks to send oil along the pipe, and Imperial Oil Ltd. is another expecting to expand production because of the increased export capacity offered by Keystone XL.

Related article: Is a final Decision on Keystone XL Close at Hand?

John Stephenson, from First Asset Investment Management Inc., explained that Keystone XL has actually become far more important to many other companies than it is to TransCanada. Basically Keystone XL is integral to the general expansion of Canada’s oilsands, as it will offer a direct route to the world market, creating far more demand.

Initially the US State Department suggested that Canada’s oilsands will make it to market regardless of the decision, thanks to the increasing transport capacity offered by rail, but Reuters completed a study that shows rail will unlikely be able to replace the 830,000 barrel a day capacity that the pipeline offers.

The Canadian Association of Petroleum Producers even went as far as to claim that if the Keystone XL pipeline is not built then production from Canada’s oilsands could fall by as much as half, compared to the predicted growth.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News