It is basically tar. Only a few refineries can handle it.
AB tar sands oil is heavy sulfur crude oil.
Not only can certain refineries process it.
There are also only certain refineries that have the capacity to take in more heavy sulfur crude oil.
Those refineries are on the Gulf Coast in LA and TX.
This was all explained to me years ago by former Freeper Thackney. Thackney was a Chemical Engineer in the petrochemical industry.
Unfortunately, I have not seen a post from him in a couple years.
He was formerly our resident expert on the industry and pipeline transport.
Alberta oil is similar to the type of oil coming from places like Iran and Venezuela.
Many refineries can not break down this type of oil.
So, reducing the freight cost to get AB oil to the Gulf does not effect the price of SWEET crude coming from TX, ND or Nigeria.
It effects the value of other HEAVY crude producers.
Keystone would have significantly lowered the cost per barrel to transport their oil to the refineries that not only have the ability but the capacity to break down this oil.
By lowering the transport cost, it increases the value of the oil FOB Alberta.
If you increase the Fob Canadian price, they will scrape the tar sands from the Earth to produce even more of it.
That is what the Green movement hate more than anything. The think tar sands production is the biggest RAPE of Mother Earth happening on the planet.
Lastly, the only other pipeline being proposed out of Alberta is heading west to the Pacific ocean.
If this pipeline is built it will greatly reduce the cost to move AB oil west.
Who benefits from that?
CA, WA refineries and CHINA.
BOOM