• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 14 mins Shale Oil will it self destruct?
  • 3 mins NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 5 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 4 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 12 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 11 hours U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 9 mins Germany exits coal: A model for Asia?
  • 12 hours Starlink Internet Courtesy of Tesla
  • 2 days Panama revoked registrations of tankers flying under their flag that have not complied with sanctions. Most are Iranian tankers. Vessel seized in Gibraltar, Grace I, flying under Panamanian Flag. Registration revoked in May. England seizing justified
  • 1 day Rising air pollution and green house effect
  • 1 day Oil Price Could Fall To $30 If Global Deal Not Extended
  • 2 days Is This The End of BBQ?
  • 14 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Tricky Times For U.S. LNG Producers

Tricky Times For U.S. LNG Producers

LNG is effectively capping gas…

Russia’s Oil Production Drops To Nearly Three-Year Low

Russia’s Oil Production Drops To Nearly Three-Year Low

Lower output from Russia’s largest…

TransCanada Boasts Long-Term Commitments For Keystone XL

TransCanada pipeline

TransCanada said it had secured 500,000 bpd worth of 20-year commitments from shippers willing to use its Keystone XL pipeline in an upbeat update on the progress of the notoriously controversial project. This amount is about 60 percent of the 830,000-bpd pipeline.

Alberta’s government was instrumental in forging this support, by committing 50,000 bpd to the pipeline from some of the oil it receives as royalties instead of cash, which would also help oil producers in the province get a better price for their crude and opt for pipelines instead of rail, Alberta’s Prime Minister Rachel Notley said.

This is widely seen as a major step towards Keystone XL becoming a reality despite persistent opposition from environmentalists, including a recently launched lawsuit against the U.S. presidential administration for greenlighting the project after the Obama administration’s veto.

Analysts cited by the Globe and Mail seem to be wary of too much enthusiasm, though. They note that Alberta’s participation in the commitments suggests there wasn’t strong enough interest from shippers to begin with. Still, there was a chance that the commitments will work, Wood Mackenzie analyst Zachary Rogers says.

"Producers aren't going to jump at the bit to sign a 20-year contract if they're not entirely sure that the market is going to want the crude," he told the Globe and Mail. "But signs this year are tilting in their favour."

For Albertan oil producers, any new pipeline is good news. Western Canadian Select heavy crude has been trading at a substantial discount to WTI as the existing pipeline capacity fills up and producers are forced to use more expensive rail transport. Meanwhile, production is booming, and with higher WTI it will continue booming based on the latest demand forecasts.

TransCanada said that with these commitments, the first stages of construction of the US$8-billion Keystone XL could start in 2019.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

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