Re:Is It Time to Revisit the Keystone XL Pipeline?
by xadhominemx on Friday April 08, 2022 @08:51AM
(#30956228)
I don’t think it would have much of an impact. There are a lot of untapped wells with much lower breakeven cost in west Texas that aren’t being exploited because the North American industry has become much more supply disciplined. Bringing more capacity online won’t increase output unless the export markets become much better developed, which will take massive refinery and terminal investments on both sides of the Atlantic.
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Re:Is It Time to Revisit the Keystone XL Pipeline?
by someelephant on Friday April 08, 2022 @09:05AM
(#30956324)
There is plenty of refining and export capacity in Texas. It would have an enormous impact on investment in oil production and therefore future oil prices in North America. Pipelines are much cheaper and safer than rail and would lower the cost of production and therefore the cost of the final product.
Re:Is It Time to Revisit the Keystone XL Pipeline?
by tzs on Friday April 08, 2022 @10:30AM
(#30957258)
> Pipelines are much cheaper and safer than rail and would lower the cost of production and therefore the cost of the final product.
Would it?
Oil is a commodity with a huge market. Isn't that oil going to fetch the same price no matter how it actually gets to the market? Lowering production costs for any given small producer should simply mean more profit for them rather than lower prices for buyers of the commodity.
Re:Is It Time to Revisit the Keystone XL Pipeline?
by xadhominemx on Friday April 08, 2022 @09:32AM
(#30956565)
Is your argument that the pipeline would reduce cost of the oil sands? Because yes, it would. But that would lead to even more US wells shutting off at these price levels. I was talking specifically about natgas terminals and processing.
Re:Is It Time to Revisit the Keystone XL Pipeline?
by hotpotamus on Friday April 08, 2022 @09:17AM
(#30956438)
"supply disciplined" is a new one to me. I assume it's a euphemism for cartel?
Re:Is It Time to Revisit the Keystone XL Pipeline?
by zaphod12 on Friday April 08, 2022 @09:24AM
(#30956500)
Nah, there's a boom and bust cycle to these industries. Prices go up, everyone exploits new wells and pours in money. Prices go down and a ton of folks go broke because the new wells are too expensive. You don't need any sort of cartel arrangement - the large companies and investors just learned their lesson after being burned a bunch of times.
Re:Is It Time to Revisit the Keystone XL Pipeline?
by xadhominemx on Friday April 08, 2022 @09:32AM
(#30956571)
They’ve all gone bankrupt at least once now and have learned their lessons
Re:Is It Time to Revisit the Keystone XL Pipeline?
by Arubis on Friday April 08, 2022 @09:05AM
(#30956332)
But it’d make some guys richer! I’ll bet they’d like that.