Seeking Alpha

RBC: Keystone XL failure would delay but not stop Canada oil sands growth

  • A U.S. rejection of the Keystone XL pipeline (TRP) could defer 300K bbl/day of oil sands growth during 2015-17, shaving $1.8B from planned capital expenditures and pushing as much as $7.8B in spending on oilfield services beyond 2018, according to an RBC Capital report.
  • Newer projects set to come online after 2016-17 could be deferred if Keystone isn't approved, but the overall impact likely would be mitigated by use of rail and competing pipelines, and producers such as Suncor Energy (SU), MEG Energy (MEGEF.PK) and Cenovus (CVE) which already have plowed billions into expansions of existing projects are hardly expected to change course.
  • RBC echoes the emerging consensus view that bitumen growth is likely to continue regardless of the ultimate Keystone verdict.
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Comments (4)
  • Bruce Baxter
    , contributor
    Comments (29) | Send Message
     
    Obama won't approve it. He favors higher oil prices in order to discourage consumption of hydrocarbons. Economic growth is the furthest thing from his mind.
    25 Sep 2013, 05:54 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1714) | Send Message
     
    The delay and rejection of Keystone favor the TransMountain pipeline owned by KMP.

     

    Long KMP
    26 Sep 2013, 09:24 AM Reply Like
  • marpy
    , contributor
    Comments (949) | Send Message
     
    One way or another the oil will get to market. America is looking a gift horse in the mouth by not approving keystone as when a line gets built either east or west then they will have to compete for the oil rather than being the only game in town.
    26 Sep 2013, 09:29 AM Reply Like
  • judgmentDaze
    , contributor
    Comments (66) | Send Message
     
    Americans that reject Keystone really take the cake. All these years they have been happy to let other countries bear the burdens of extracting oil and gas for America's benefit but when it comes time for Americans to bear just a little of the burden and not just the benefits of oil and gas it is just: whine, whine, whine.
    27 Sep 2013, 08:32 AM Reply Like
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