Keystone XL Pipeline

Read the book "The Frackers" recently. Very inspirational as some of the founders who started these now huge companies came from very meager beginnings.

One thing that really surprised me is that the CEO of Continental Resources (who happens to be a huge Republican) is very much against the Keystone pipeline. Anyway, if you are looking for a good read (or audio book) check out "The Frackers"...

http://www.amazon.com/The-Frackers-Outrageous-Billionaire-Wildcatters/dp/1591846455

Not sure what will become of the Keystone but with all the oil train derailments it seems silly to argue that trains can do the job better. Also heard an interesting story about how Amtrak is running behind schedule as much as 20 hours in some cases due to all the traffic on the rails from the crude tankers.

 

Parts of it are finished now and have been for a few years. Other parts are are still waiting final state approval. Crude oil is very corrosive. Tar sand oil is even worse in many ways. There is not just one kind of oil. Some is much easier to handle and refine, some is not. I used to be onboard with the expansion but I could care less now. Why should we as Americans risk our environment for not much gain overall. If we are exporting oil now, do you really think the pipeline is going to bring us more oil. No. It will just be exported too. Some of it may be refined and that will just be less reining capacity for America. And that is the problem now and has been for years. You can have all the crude oil in the world but until you can turn it into a usable product it it useless. And I could give two ##### about any political views. They all lie to suit their needs.

 

What I dont understand is why they cant remove the abrasives before it hits the pipeline...seems like there could be an easy pre-treat/filter solution to remove any abrasives. Obviously, I know nothing about it though. I'm sure they would have that well under control by now it it were possible.

 

Part of the plan with the XL keystone pipeline, which is the 3rd pipeline by keystone to cross the border, was to start with the tar sands, which are abrasive, dilute it with North dakota oil, ship it to the refineries along the gulf coast, refine the oil, and ship the refined products to china and India. One has to also consider that there are other major uses for the refined products from crude oil, used in almost all parts of manufacturing today. The canadain tar sands are already being shipped to the gulf coast and other refineries in the US.

 

The Keystone Pipeline System is a four-phase pipeline system which transports synthetic crude and diluted bitumen from the Canadian Oil Sands plus crude from Montana and North Dakota to refineries in Nebraska, Illinois and the U.S. Gulf Coast. Phases 1-3 are already in service, with Phase 1 being commissioned in June, 2010. The final phase, the Keystone XL Pipeline, is a second line from Hardisty, Alberta to Steele City, Nebraska.

The reason the pipeline doesn't go to the Canadian west coast is because the pipeline products are going to refineries in Nebraska, Illinois and the U.S. Gulf Coast. There are existing pipelines as well as proposed expansions and new lines that do/will run over to the Canadian west coast.

"Diluted bitumen has no greater likelihood of accidental pipeline release than other crude oils..."
U.S. National Academy of Sciences: http://www8.nationalacademies.org/o...ademies/na+(News+from+the+National+Academies)

"The United States relied on net imports (imports minus exports) for about 40% of the petroleum (crude oil and petroleum products) that we consumed in 2012."
U.S. Department of Energy (DOE): http://www.eia.gov/energy_in_brief/article/foreign_oil_dependence.cfm

The U.S. DOE projects that by 2040, petroleum imports may decrease from 40% to as low as 27%, or as high as 51%, depending on future oil price trends. Projections from the DOE and others are split as to whether the U.S will be truly self-sufficient in the future. Even if it is, U.S. refineries will miss out on the widely accepted projections showing a continued increase in demand for refined products if they do not have access to excess crude products nor the ability to transport them to refineries.
U.S. Department of Energy (DOE): http://www.eia.gov/forecasts/aeo/MT_liquidfuels.cfm#net-imports

Most of the sand is already removed whether the source is from surface mining or from producing wells. The resulting product, again depending on where it is from, can be pipeline-ready, or it may require further upgrading (reducing the viscosity) before being transported to refineries.

There is no basis in fact for the claim that the oil is just going to be sold to China.

The upgrading of Oil Sands bitumen and heavy oil into refinery-ready products actually occurs either at the mines, or at upgrader facilities located elsewhere in Alberta. Upgraded Canadian bitumen has been transported to U.S. refineries for over 40 years.

 

The oil companies make more money if they can get the product to port.


Why WTI crude oil is trading ~$15 per barrel below Brent

<snip>

But it probably will, the Chinese really want as much LNG as they can get because of the snog issue.

 

True enough, and I agree that some very well could be sold to China at some point. The point I was making was that the claims that the only reason for the XL is to get product to China are false.

 

I would say that CEO that is against the pipeline has strong ties with the railroad. As a matter of fact I would say most of your liberals/environmentalist are railroad lobbyist in disguise.