Posted on 04/05/2022 9:17:33 AM PDT by blam
With Brent crude oil hovering around prices not seen since 2014 amid a geopolitical supply crunch, the Biden administration is looking to boost oil imports from Canada – but refuses to resurrect the Keystone XL pipeline that President Biden eliminated on his first day in office, according to the Wall Street Journal.
According to people familiar with the situation, no clear-cut solutions have emerged – with the most promising option appearing to be importing via rail, as well as increasing pressure on existing lines or installing larger pipelines along permitted routes.
That said, those options would provide limited relief because rail transport is expensive, and existing pipelines are at or near capacity. One such pipeline, Enbridge’s Mainline system, carries 2.85 million barrels of Canadian crude daily from Alberta to the Midwest – however company officials say it’s running at full capacity.
Canadian officials say expanding the Keystone XL pipeline network is the way to go – and would offer a larger, more efficient solution. The project would have carried 830,000 barrels a day of Canadian crude to Nebraska, and then on to refineries on the US Gulf Coast.
According to S&P Global Commodity analyst Kevin Birn, Canada has sufficient reserves to meet US demand – they just can’t efficiently deliver it. And of course, we can thank Biden’s ‘green’ decision to kill Keystone XL for the current predicament.
“There’s not a limitation in terms of resource potential,” said Birn, adding “There’s a limitation of capacity.”
With gasoline prices at near-record levels, President Biden last week ordered 180 million barrels of crude oil to be taken from the nation’s emergency reserves to increase supplies.
At the same time, White House officials say Mr. Biden has no interest in reviving the Keystone XL pipeline project. They say that it couldn’t be completed in time to address today’s shortfall and that the president is still committed to reducing greenhouse gas emissions from fossil fuels over the long term. -WSJ
The White House insists keeping Keystone XL alive wouldn’t have made a difference.
“While the U.S. continues to engage with a variety of producing countries to address the current supply imbalance we are seeing, the Keystone XL pipeline would have done little to nothing in addressing that supply,” said a spokesman, without elaboration.
One potential source of relief, Canada’s Trans-Mountain pipeline from Alberta, won’t be completed until the end of 2023, when it will be able to provide an additional 590,000 barrels per day to Canada’s West Coast, where it will then travel by ship to refineries in the US and Asia.
More expensive rail options would provide an additional 200,000 barrels a day – a fraction of the average 4.3 million barrels the country exported every day last year, according to the US Energy Information Administration.
One Canadian official pushing for the revival of Keystone XL is Alberta premier Jason Kenney, who’s criticized the Biden administration for looking at Venezuelan and Saudi oil over Canadian oil.
“We’re pleased to hear that there are discussions around enhancing North American energy security,” said a Kenney spokesman. “Instead of going cap in hand to the Saudis, Iranians and Venezuelans to replace Russian energy, instead of replacing dictator oil with dictator oil, come to your liberal democratic friends and allies in Canada.”
According to the report, Kenney spoke with moderate Democrat Sen. Joe Manchin of West Virginia last month to discuss options. Manchin notably asked Biden to reconsider his decision to scrap the Keystone XL project.
As a reminder, when Biden took office crude was $60 a barrel and gasoline averaged less than $2.40 a gallon in the US.
Who knew a “war on energy” could be switched into the victory lane so quickly and easily?
Energy was not the target. The deletion of excess humanity was the real objective. There are just too many people alive in the world today.
What’s amazing is that the pipeline was being built, the infrastructure and workers wee on site, and in Biden’s first day in office he killed all of it demonstrating again that you can never underestimate his ability to screw things up and make the absolute wrong decision.
“that it couldn’t be completed in time to address today’s shortfall”
What they mean is, in time to address the 2022 election.
think I heard transport of oil by... Train $10/barrel
—
Warren Buffet is smiling.
I doubt TC Energy, the owner of Keystone XL, would ever consider restarting the project after losing billions because of Biden and Obama’s political whims.
Warren Buffet was against Keystone because he owns the railroads that carry the oil.
True.
And the contracts for building the wall.
I’ve never seen or heard of Biden saying or even implying he wants to bring in more oil. And even if he did say that where and when is action taking place? I just don’t believe slow Joe really wants lowered petroleum costs. He is a proven liar.
“I think I heard transport of oil by truck is $8/barrell, Train $10/barrel and ship is $20/barrel
Pipeline is $1/barrell. Follow the money” Do you have a source for that? Shipping is cheaper, than trains, which are cheaper than trucks on a cost per mile per ton basis.
Pipeline seems about right as being the cheapest.
His mumbles about more energy are more GREEN energy.
Biden has to go!!!
So it turns out he wants that Canadian oil after all. He’s just decided to import it via means that are more expensive, more prone to spills and which are more emissions intensive than the pipeline that he cancelled on day one.
And he won’t revisit that decision because......reasons.....
sounds about right.
If it comes on the choo choo train, maybe Biden allies make the dough?
(1) Biden wants to lower oil prices to drop heating costs and prices at the gasoline pump.
(2) For item (1) to happen will require massive investments to spur production of natural gas and oil (.....unless fuel taxes imposed by State and federal governments are dramatically cut. States, especially those run by Democrats have some of the highest fuel taxes per gallon, and they are addicted to spending that money....) So it must be massive investment to increase production. However, it will take months from the day of investment until the “new fuel capacity” comes on line. With midterm election primary season about to start, Democrats can't wait very long they need immediate changes.
(3) Who is their right mind is going to fund the massive investment in expanding oil and gas production, when state, federal and Canadian government want to outlaw internal combustion engines within the next 8 to 13 years? The answer is .... corporations that will expect the investment will be fully paid off within 8 to 13 years at very high profits. The problem will be that the level of “profits” or the needed “return on investment” will be hard to achieve while causing the price at the pump to be low.
(4) A key constituency group for the Democratic Party is against fossil fuels and against low energy prices. Democrats are going to face loosing one base to try to save a group that may only marginally support them if all goes well with increasing energy supplies and dropping prices.
This sure sounds like a no-win situation for Democrats. I can see why trying to jawbone other oil producing countries was phase 1; phase 2 was dipping into the strategic oil reserves. Phase 3 will need to be legislative changes to the retail price, such as state and federal tax reductions, which will be politically hard, but necessary before the primary elections. Phase 4 will be some kind of proposed tax cuts or depreciation write-offs for fuel production investments that make the return on the investments huge.
Please pass the popcorn, as this election season is going to be good fun to watch.
Ha, tell the Motorists fueling up that there is going to be a tax credit on their tax returns next year. That ought to win a few votes for these fools.
Some states are talking about a temporary drop on the per gallon tax at the pump not in a tax return. The same could be done on the federal level.
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