Obama officially rejects Keystone XL

[crazy canuck]

Oil sands!

Emission caps tend to fall more on the end user, not the producer.  So increased costs would tend to decrease demand, but are unlikely to shut down all of Ft McMurray.

My understanding is that the extraction of oil from TAR SANDS emits much more carbon than traditional drilling (or fracking) does.  Therefore any system that penalizes carbon emission is going to disproportionately impact Alberta TAR SANDS extraction.

Its really just a cost issue.  For years the accepted wisdom was that no oil would come out of the area because the costs of production (both getting the raw material and then refining it) were simply too high.  As oil prices began to rise the extraction of the oil from those fields became profitable.  If a new costing structure makes the extraction more costly and unprofitable then production there will stop until oil prices reach the point that it is once again profitable to exploit the resource.  If alternative energy sources and uses are developed then the oil sands may not be profitable.  But given the rising rate of oil consumption I am not too sure about that.

[Tamas]

 

What is so hard to understand? As I understand this decision hurts the Canadian economy, not the US one, AND by simply not letting it be built, Obama and the environmentalists appear as if they have actually done something.

It's a win-win if I've ever seen one

[LaCroix]

What is so hard to understand? As I understand this decision hurts the Canadian economy, not the US one, AND by simply not letting it be built, Obama and the environmentalists appear as if they have actually done something.

It's a win-win if I've ever seen one

bakken oil must flow. trains are, relatively, inefficient and seem to be much more environmentally harmful due to the frequent derailments.

[Barrister]

What is so hard to understand? As I understand this decision hurts the Canadian economy, not the US one, AND by simply not letting it be built, Obama and the environmentalists appear as if they have actually done something.

It's a win-win if I've ever seen one

bakken oil must flow. trains are, relatively, inefficient and seem to be much more environmentally harmful due to the frequent derailments.

XL wasn't about Bakken-formation oil though.  It was for Alberta oil, and principally oil from Ft McMurray's oil sands.

[LaCroix]

XL wasn't about Bakken-formation oil though.  It was for Alberta oil, and principally oil from Ft McMurray's oil sands.

will no bakken oil flow into the pipeline? i've heard otherwise, but the person who told me may have been wrong. i'm not saying it's made for bakken, but any additional pipeline really helps out there.

[Barrister]

XL wasn't about Bakken-formation oil though.  It was for Alberta oil, and principally oil from Ft McMurray's oil sands.

will no bakken oil flow into the pipeline? i've heard otherwise, but the person who told me may have been wrong. i'm not saying it's made for bakken, but any additional pipeline really helps out there.

Well probably some would.  It's not one single pipe - it's part of a network after all.

[LaCroix]

bakken oil companies are still having to burn off 20%~ of all natural gas produced due to the lack of infrastructure (mainly pipelines, iirc). while they're trying to reduce the flaring, any additional pipeline has got to help. and, at least by last summer, it's still too early to tell what the future is gonna hold for bakken oil production. so, this pipeline does help the U.S. + could reduce environmental harm. it's a decision that really doesn't make much sense to me, and i like obama.

[Barrister]

bakken oil companies are still having to burn off 20%~ of all natural gas produced due to the lack of infrastructure (mainly pipelines, iirc). while they're trying to reduce the flaring, any additional pipeline has got to help. and, at least by last summer, it's still too early to tell what the future is gonna hold for bakken oil production. so, this pipeline does help the U.S. + could reduce environmental harm. it's a decision that really doesn't make much sense to me, and i like obama.

I should point out that Keystone is an oil pipeline, and won't hold natural gas.

[The Brain]

Keystone = Ed?

[LaCroix]

I should point out that Keystone is an oil pipeline, and won't hold natural gas.

iirc, the issue is that because the oil has to flow through the pipelines, there's not enough room for gas. this is based on research from last year, so my memory might be faulty. if the keystone wouldn't alleviate the flaring problem at all, i imagine additional infrastructure would help the situation out regardless through some indirect way. plus, the point re: train usage in general.

[MadImmortalMan]

What is so hard to understand? As I understand this decision hurts the Canadian economy, not the US one, AND by simply not letting it be built, Obama and the environmentalists appear as if they have actually done something.

It's a win-win if I've ever seen one

It does hurt Canada more. But that doesn't make it not what Sir Humphrey would call a courageous decision.

Now, every time a train derails, it's gonna be Obama's fault and zerohedge is going to repost that pic of Obama putting a medal on Warren Buffett.

[garbon]

zerohedge

Is that something we are supposed to care about?

[Razgovory]

zerohedge

Is that something we are supposed to care about?

I'm worried about it.  It's a crank blog.

[MadImmortalMan]

zerohedge

Is that something we are supposed to care about?

Please don't. 

[Eddie Teach]

zerohedge

Is that something we are supposed to care about?

I'm worried about it.  It's a crank blog.

You worry too much.