Didn’t Biden shut down the Keystone pipeline? How is it still operating?
Biden shut down the construction of Keystone II.
This is Keystone I.
The second one was going to basically parallel the first one. The objective is to move more Alberta oil eventually down to LA/TX where there are refineries with not only the ability to breakdown that type of heavy crude, but also the excess capacity to increase production.
By moving the oil via pipeline you reduce the cost to transport/barrel. It is much cheaper per barrel to ship in a pipeline than it is by train car or any other transport means. It is also generally much safer for the environment.
By reducing the cost of transport, you INCREASE the NET return for the oil FOB Alberta. IF you increase the return FOB Alberta they dig more oil sands out of the ground in AB. The price for Alberta oil at times sells for a significant discount to other crude in the world. A few years ago when Trump was POTUS, it was selling FOB Alberta for $18/barrel. This is because there is only ONE pipeline heading west to Vancouver. They are in the process of doubling the size of this pipeline. The pipelines heading south or east are all filled to capacity.
The Greenies HATE oil sands production. They compare it to hitting baby seals over the head with clubs.
They think that scraping the ground in northern Alberta and processing that oil sand is the biggest sin in the world against Mother ERF. Building the second Keystone pipeline would have increased this practice. Therefore, it had to be stopped by any means possible.
That was a big mis-communication as nobody clearer described what was being shut down.
Keystone wasn’t shut down. The construction of Keystone XL was shut down.
It was phase 4(actually phase 5). XL was to run diaginal to Keystone 1 until it intersected in Steele City Ne.
It was to carry oil a shorter distance thru larger diameter pipe.
When it was shutdown, Canada then pulled out of the deal.