Keystone XL pipeline good for Pengrowth Energy Corporation?

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Meconomy153
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Joined: Sun Oct 12, 2014 2:00 pm

Keystone XL pipeline good for Pengrowth Energy Corporation?

Post by Meconomy153 » Sun Oct 12, 2014 8:26 pm

When Keystone XL pipeline is build, it can carry seven-hundred-thousand barrels per day. There is far more oil than the pipeline can carry, so rail tankers will be needed even if the pipeline is built. Oil companies like Pengrowth Energy Corporation (PGH) will profit from the pipeline.

Keystone XL is a extension pipeline for Keystone from Canada and the northern United States primarily to refineries in the Gulf Coast of Texas.

The costs for oil transport are fifteen dollars by rail and five dollars by pipeline. If all of oil could be moved by pipeline, they would save ten dollars a barrel. But there is far more oil in the area than the Keystone can carry, so the law of supply and demand says the cost to use the Keystone will rise. To ship most of the oil in that area there is need three Keystones XL’s, so rail will stay the norm.

Because of rising production of US shale oil some are saying in coming years oil’s high will be ninety dollars. That could be doubt seriously.

Occasionally it may dip below ninety, but OPEC needs at least ninety and some say that Russia needs one hundred and twenty dollars a barrel to keep their economies afloat. OPEC and Russia they still produce 50% of the worlds oil, simply pulling back on production a bit will keep prices where they want them, and that means: oil over ninety dollars.

The US is producing a lot of oil, but not enough to offset what OPEC and Russia can withdraw from the markets. And don’t forget the developing world whose demand for oil will only keep increasing.

What do you think?

okpatriot
Posts: 29
Joined: Sun Oct 12, 2014 11:09 pm

Re: Keystone XL pipeline good for Pengrowth Energy Corporati

Post by okpatriot » Sun Oct 12, 2014 11:44 pm

I usually take Stansberry's long winded investment scam spam video's with a grain of salt...... But this link below discusses this exact subject. He seems to think there will be more pipelines etc.. with Keystone XL as just the beginning.

http://pro.stansberryresearch.com/1409O ... 64/?h=true

GN912457
Posts: 24
Joined: Mon Oct 20, 2014 5:23 pm

Re: Keystone XL pipeline good for Pengrowth Energy Corporati

Post by GN912457 » Thu Oct 23, 2014 5:00 pm

Thanks for that it started to get a bit though.

The US Government said that it didn't contaminate the water. Oh well that's fills me with confidence.

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