U.S. refiners move on with plans, no longer expecting Keystone completion


U.S. refiners increasingly doubt the Keystone XL (TRP) pipeline expansion will ever be built, and they no longer care, as railroads are carrying soaring amounts of crude from Canada to refineries along the U.S. Gulf Coast.

Further, Enbridge (ENB) is expanding existing pipes to carry Canadian crude south, and it doesn't need federal permission because it's using existing pipeline rights of way; also, there's so much U.S. oil from its own wells that refiners don't need lots more heavy crude from the north to keep busy.

Refiners are moving ahead with other plans: Valero Energy (VLO) had signed to receive oil from Keystone when the project was first announced, but it no longer considers the pipeline critical to its business - "If we just sat around and waited for Washington, we'd never get anything done."

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Comments (20)
  • marpy
    , contributor
    Comments (1720) | Send Message
     
    Since the cost of transporting this oil by rail is two to three times more than transporting it by pipeline you could say that the greens have succeeded in increasing oil based energy costs to Americans at least till the pipeline gets built. Based on the difference in transport costs, the shippers will quickly swing back to pipe when it is built.
    JMO
    5 Sep 2013, 06:29 PM Reply Like
  • Topcat
    , contributor
    Comments (580) | Send Message
     
    Except that U.S.A won't get any energy from Keystone...it is Canadian, and will be converted to gasoline at the gulf and shipped to pricey Europe markets..you can say it might add a few temporary constructions jobs, but as far as energy independence, it does nothing for the U.S.A.
    5 Sep 2013, 07:39 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4296) | Send Message
     
    Oil is fungible.
    5 Sep 2013, 09:40 PM Reply Like
  • starboard
    , contributor
    Comments (93) | Send Message
     
    Canada has always been a good neighbor. Canada has vast oil reserves. why would we want to treat good neighbor badly. Why would we drive Canada into the arms of enemies?
    5 Sep 2013, 10:07 PM Reply Like
  • Matthew Brown
    , contributor
    Comments (1032) | Send Message
     
    Incorrect. The USA is already getting Oil Sands oil to Midwestern refineries that is increasing supply of gasoline and thus, keeping prices lower than otherwise. Keystone would increase this supply even more. It's true that some would be exported but increasing your supply will always have an effect on the price, in keeping it down.
    6 Sep 2013, 02:49 PM Reply Like
  • RS055
    , contributor
    Comments (5597) | Send Message
     
    Its also much riskier transporting oil on trains and trucks. Its only a matter of time before there is some big accident - like there was in Canada.
    But .... logic and reason are no longer the governing forces. Superstition, religious convictions, and ideologies are what politics revolves around. So nothing will change until there is some accident. Then, it still wont change because the powers-that-be will blame it on some outside force.
    Its OK - carry on.
    5 Sep 2013, 07:13 PM Reply Like
  • Hendershott
    , contributor
    Comments (1784) | Send Message
     
    Dies with a quiet whimper. The shale revolution has radically changed the North American energy profile. Still, there might come a time we wish we had the thing. TRP could do what Enbridge is doing and expand the existing pipeline.
    5 Sep 2013, 08:07 PM Reply Like
  • mlasell
    , contributor
    Comments (293) | Send Message
     
    This ain't superstition.
    http://bit.ly/1cMDrEk
    It's a revolting mess.
    http://bit.ly/1cMDrEm
    And it is completely unneccessary and a crime against our children.
    5 Sep 2013, 08:19 PM Reply Like
  • Joe from the Beach
    , contributor
    Comments (528) | Send Message
     
    If TRP sells off sharply on this news, a patient investor should put in a few bids.
    5 Sep 2013, 08:40 PM Reply Like
  • contaylor
    , contributor
    Comments (18) | Send Message
     
    Just like Syria---leave it to Obama to muck it up !!!Too late & not as important as golf???
    5 Sep 2013, 09:29 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4296) | Send Message
     
    The Luddites have gained the momentum.
    5 Sep 2013, 09:41 PM Reply Like
  • bobby44
    , contributor
    Comments (492) | Send Message
     
    US - Russia relations the worst since Reagan! US - Canada relations the worst since Kennedy! US - Mid East relations the worst since Bush sr.! Intergovernmental relations the worst since Lincoln! What a guy!!
    5 Sep 2013, 11:15 PM Reply Like
  • Joe from the Beach
    , contributor
    Comments (528) | Send Message
     
    Yeah it's all Obama fault. Before it all GW Bush's fault. In reality this problem is TRP's fault. Looking at the proposed Keystone route http://bit.ly/15JbmaV , the mistake TRP is making is Nebraska portion. Nebraska farmers have a gripe as a spill would damage the Nebraska aquifer. The smart route, which avoids the politics, is to go due East into South Dakota and then due South via existing Nebraska pipeline easements.

     

    If and when TRP does ths, its buy time.
    6 Sep 2013, 10:51 AM Reply Like
  • Matthew Brown
    , contributor
    Comments (1032) | Send Message
     
    They have already rerouted it. Your information is two years old.

     

    The reality is however, that the keystone pipeline is probably not getting built any time soon – if at all.

     

    That’s ok. Canada and TRP have largely moved on. We are expanding pipelines to go to the West Coast, building a pipeline that is over 30% larger than keystone to Canada’s east coast, expanding others and reversing yet more.
    Obama and the environmental left has done Canada a great favour in energizing the Oil Sands to seek other markets and I believe, the USA will look back on this policy as one of the biggest disasters in an administration that has, frankly, been full of disasters.
    6 Sep 2013, 02:55 PM Reply Like
  • mlasell
    , contributor
    Comments (293) | Send Message
     
    Not really disasters compared to starting 2 wars and wrecking the economy. Obama has been pretty benign, wouldn't you say?
    7 Sep 2013, 06:17 PM Reply Like
  • Matthew Brown
    , contributor
    Comments (1032) | Send Message
     
    In this Canadians opinion, the housing crisis was caused by fed policy pretty much forcing banks to give out mortgages to people that would otherwise not qualify. This policy was started by Clinton.
    As well, GWB didn't start two wars in a vacuum, there was a little thing called 9/11 that happened.
    8 Sep 2013, 06:52 AM Reply Like
  • mlasell
    , contributor
    Comments (293) | Send Message
     
    "When the UN Security Council would not support the U.S. war, Bush turned to the U.S. Congress for a war vote giving him “all necessary means”. Ten years later Iraq lay in ruins. A million Iraqis died, millions became refugees. More than 1.5 million US soldiers were deployed to Iraq. Today thousands of U.S. and NATO soldiers are disabled, traumatized and 1/3 will suffer from PTSD."

     

    Tell me again how this wasn't a disaster, economic drain and totally unrelated to 9/11. Your opinion on the roots of the housing crisis was discredited shortly after after Fox News trotted it out.
    8 Sep 2013, 10:38 AM Reply Like
  • mlasell
    , contributor
    Comments (293) | Send Message
     
    Using just the death count, Bush/Cheny made Sadam Hussein look benign, let alone moderate, cautious Obama.
    8 Sep 2013, 11:01 AM Reply Like
  • Matthew Brown
    , contributor
    Comments (1032) | Send Message
     
    I never said anything about the Iraq war.
    Wait, is this Cindy Sheehan?

     

    Bye
    8 Sep 2013, 12:33 PM Reply Like
  • Hendershott
    , contributor
    Comments (1784) | Send Message
     
    TRPs tactics and PR leave a lot to be desired.
    6 Sep 2013, 02:24 PM Reply Like
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