Nearly a Million Additional Barrels per Day
In January 2021, U.S. President Joe Biden announced that he is revoking previously approved permits for the Keystone XL pipeline, originally planned to add 830 thousand barrels per day (Mbbl/d) of
Good News For Western Canada: Excess Pipeline Capacity By 2023
Summary
- Total output from Western Canada has returned to pre-pandemic levels and is forecast to rise.
- Transportation capacity bottleneck should be alleviated as pipeline capacity increases by nearly 1 MMbbl/d in the next few years.
- Could lead to higher WCS prices in a tightening market.
Josh Young is the Chief Investment Officer of Bison Interests, an investment firm focused on publicly traded oil and gas companies. And he is the former Chairman of the Board of Iron Bridge Resources, which sold to Warburg Pincus and CPPIB backed Velvet Energy in 2018 for $142 million. He is a value investor primarily focused on energy stocks, natural resources stocks, and companies trading at low multiples to earnings, cash flow, or book value. He has presented at numerous investment conferences, including Platts, LD Micro, Oil & Gas Money, Louisiana Energy Conference, and the Global Resources Investment Conference and has been featured in media including Barrons, Bloomberg, Business Insider, Fox Business News, RT and Oil & Gas Investor Magazine. He is a graduate with honors from the University of Chicago in economics.
Analyst’s Disclosure:I am/we are long CRLFF, BTEGF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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