Posted on 11/13/2018 9:07:17 AM PST by bananaman22
Canadian oil prices briefly plunged as low as $15 per barrel last week, after a U.S. federal judge blocked the construction of the Keystone XL pipeline.
Canada’s oil industry has lurched from pipeline crisis to pipeline crisis, with projects blocked at every turn. Just a few months ago, the Trans Mountain expansion – a proposed pipeline to be built from Alberta to the Pacific Coast – also ran into trouble and is now ultimately in doubt.
The inability to build new capacity capable of shipping higher levels of oil out of Alberta has crushed Western Canada Select (WCS), a price marker that tracks heavy oil from Canada. WCS has historically traded at a discount relative to WTI, taking into account differences in quality and the higher cost of transit, but the discount has exploded this year as Alberta’s pipelines are tapped out. In October, WCS traded at a record $50-per-barrel discount to WTI.
(Excerpt) Read more at oilprice.com ...
At $15/barrel it would be feasible to move every drop of oil out of the tar sands region by rail.
“a U.S. federal judge blocked the construction of the Keystone XL pipeline.”
When did this happen? I thought it was moving forward.
No they wouldn’t combined with the cost of rail being $15 they will lose money to produce it....
Sounds like we need to outlaw a lot of judges. Something is very wrong with a system that allows one guy to play God.
Drill and frack until it it’s below $5.
Anything over .50 a gallon is too much.
To bad there wasn’t a way to transport it through.. say, Pennsylvania for example?
I live in MN. It’s almost worth it to drive up to Wiinipeg to gas up the car. /sarc>
“Something is very wrong with a system that allows one guy to play God.”
There’s nothing wrong with the system. There’s something wrong with the people who allow unelected judges to create law and to create national policy far beyond the scope of their limited jurisdictions.
there3 was a report that Us oil prices are goign to ‘skyrocket’ (apparentyl because of soemthign the Saudis just did?)
“Would they even be able to produce oil from tar sands at $15 a barrel? ”
Nope. Even if the Keystone should be built not much Canadian oil would flow through it. US Frackers are kicking butt.
yesterday
I have no doubt the Obama appointed judge will be overruled.
As usual, Justice Thomas is right. There needs to be a ruling by the SCOTUS which limits or obliterates lower courts’ ability to issue these nationwide injunctions. This abusive practice only started in the early 1960s. There is no constitutional basis for it.
Federal Judges issuing national injunctions is something the Supremes need to deal with... This is beyond overreach by the district courts. I am now hopeful the USSC will smack this illegal practice down.
If oil is easier to ship the price goes up, and if it is harder to ship the price goes down.
This article seems to say the opposite. I don't get it. - Tom
Yes, Justice Thomas has repeatedly stated this practice must be dealt with.. My guess is, it will be and after ruling officially this practice is patently unconstitutional Thomas will announce his retirement.
Might as well stay put and pull it out of the rail car on its way down to the refineries.
Tom correct your previous post by saying you disagree with the premise of the article that implies that if oil is easier to ship it is more expensive to buy, than if it is harder to ship. - Tom
Gas is still $3.14 in Washingtonistan.
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