Why the oil sands no longer make economic sense

[dmlfarmer]

You are missing the point. Keystone provided no net benefit to the US, only to Canada. Plus it was opposed by many groups including enviromentalists, farmers and ranchers, and even some in the oil industry as it would compete with new US production.]

If you were the PM of Canada and the US wanted to build a pipeline from the Bakken fields of North Dakota to Churchhill for the purpose of getting ND oil to tidewater in the belief that global warming would make this port usable year round in the future, would you approve this pipeline? Or if they wanted to build the pipeline to Kitamat to export to Asia (Northern Gateway route) would you approve it knowing it would only move US oil across Canadian soil and sensitive environmental areas and is opposed by many Canadian groups?

[ado089]

Keystone is a non-issue. The Americans are already getting all the oil they want from us at a discount. Why would they want a pipeline that would mean paying Gulf price for crude. Oil needs to move east and west so it can fetch a global price.

[chuckChuck]

Trans Canada Energy east project also included a proposed feeder pipeline from the Bakken oil development in North Dakota to meet up at Moosomin.

It was planned to carry 200-300,000 barrels per day. Whether it ever happens or not is another question as they may build enough US pipelines that will carry Bakken oil before Trans Canada gets operational.

Bakken development is facing a similar problem in that the pipeline infrastructure is not sufficient. But if the demand in China is slowing and the world economy is weak it may take many years for oil prices to recover enough to justify all this expanded production and infrastructure.

[farmaholic]

I wonder how many cars per week get pulled from Stoughton Sk. to Regina?

[AlbertaFarmer5]

Regarding keeping the oil in the ground, but ready to go. Maybe the shoe would be on the other foot then. It would be the threat of oil sands oil flooding the market that would keep the middle eastern oil cheap and flowing. Make OPEC irrelevant. Tell the world that oil sands are shut in at anything below $x.xx And full bore above that. That would neuter OPEC.

Not advocating this, and not going to happen of course.

[perfecho]

Kinda like farmers not growing unless a certain price?????

[sumdumguy]

Farma, 2 long, long like 200 cars yesterday, but I am not watching all day, every day.

[biglentil]

One hiccup in the mideast and we will see 70us oil quick. High lentil prices might set off the unrest. The best time to buy when the most people are pessimistic, sell when optimism at a high. Bet, Bet, Bet!

[sumdumguy]

I think you are right Big Lentil, let's go all in. Poker Classic this weekend.