RE:RE:RE:RE:Irony of the can kicking decision process- straw to gold
The Keystone expansion will have an impact on heavy oil producers.
WCS is heavy oil with an API around 20. That oil needs to get to the US refirneries that specialize in heavy grade feedstock.
COS creates a blend with an API around 33.
If anything, the discount on WCS is slowing the development of new SAGD projects, which reduces inflationary pressure on companies like Syncrude who are undergoing large capex spends that are labour intensive.
COS should be thanking the US for dragging its feet on KXL approval.
But from a Countrywide standpoint, we as Canadians need the approval. The Americans built the refineries and our heavy oil is landlocked.