Keystone XL Pipeline Nixed
Markets were also mixed in international trading. In Asia, Japan’s Nikkei had an excellent day, adding 149 points. In Hong Kong, it was a different story for the Hang Seng, which fell by 186. In Australia, the ASX gained 22 points.
Keystone XL Pipeline NixedAs of today, it looks like a new pipeline connecting the US and Canada won’t be happening. President Obama has officially rejected the deal out of environmental concerns. The pipeline promised to be a boon for Canadian oil sands companies, helping them to ship their oil to refineries in the United States.
It’s still unclear exactly what this means for the companies who had planned on using the Keystone XL pipeline. Although there are alternate paths to the refineries they need, none of them have had the volume available that Canadian companies say that they must have. All of this comes at a time when oil prices are still depressed, piling on the troubles for producers in the north.
While the Energy Minerals sector as a whole has been surprisingly healthy -- mostly due to coal mining and refineries -- the tar sands producers have been hurting. In the Dakotas, people are being laid off by the thousands as their companies struggle to make a profit out of sub-$50 oil. That’s also been true of Canadian producers, which are largely in the same boat as producers in the Dakotas.
Regardless of whether or not they’re making a profit, they can count on the fact that the Keystone pipeline won’t be available any time soon. That cuts off a crucial shipping option for what the northern oil companies do produce, and will likely keep prices at the pump right where they are, rather than lower them, which is what the Keystone project had hoped to accomplish.
Published on Nov 6, 2015By Aaron Phillips