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To: jazusamo

Last time I heard, the Canadians wrote off the keystone XL, and started a pipeline out to Vancouver, so they could transship oil to the chinese. Also, the oil sands operations are shutting down due to costs of extraction.


12 posted on 03/23/2017 10:18:23 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it. MAGA!)
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To: factoryrat

The pipeline to the coast has been in the works for a long time.

As for shutting down the oil sands — not happening. Lower petro prices do reduce new development. However, once production has been started, the marginal cost of extraction is far, far lower than the average cost (which includes all the sunk costs). Furthermore, government royalty payments are reduced, when the price of oil drops. The oil companies thus take a larger share of the sales, when the price is lower.

Meanwhile you (i.e. Americans) continue to get a bargain, because you have considerable monopsony powers, until the pipeline to the coast gets built.


22 posted on 03/23/2017 12:16:25 PM PDT by USFRIENDINVICTORIA
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