Bill Doskoch: Media, BPS*, Film, Minutiae

Curated knowledge, trenchant insights & witty bon mots

The Keystone XL pipeline is approved by Trump, but will it be built?

Keystone Pipeline

One expert opines that even though Keystone XL got the go-ahead from U.S. President Donald Trump on Tuesday, there’s only a 50 per cent it will actually be built.

From the Edmonton Journal (“New American demands mean only 50-50 chance Keystone XL pipeline will be built, expert says“):

That could include making the project part of wider free trade negotiations, requiring that only American goods and services are used for construction, or a border tax on energy exports, said Paul Michael Wihbey, founding partner of Connect Global Strategies.

As well, Gulf Coast refineries are switching to process light Bakken crude and might not have capacity for the heavy oil Keystone would carry from Alberta, Wihbey told an Alberta Enterprise Group-Edmonton Chamber of Commerce luncheon.

The importance of the 1,900-km pipeline has diminished greatly in the last few years, said Wihbey, also president of Washington, D.C.-based GWEST LLC, a consulting firm specializing in resource geopolitics.

“The Americans are going to ramp up production, they’re going to use that refining capacity, they intend to export crude and LNG (liquefied natural gas). The energy landscape has changed entirely,” he said.

“Subject to those conditions I mentioned earlier, I would say (the chance of Keystone construction) is probably 50-50.”

Wed, January 25 2017 » * Big Picture Stuff, Main Page