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

|By:, SA News Editor

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.