Biden Admin Desperate For Canadian Oil... But Won't Resurrect Keystone XL Pipeline
US president Joe Biden is desperately demanding more oil from Canada.
But Biden so far appears unlikely to undo his ban on TC's Keystone XL project because he needs to keep appeasing his Green base.
KXL may be the best option to deliver the increased oil supply the Democrats need to put the brakes on skyrocketing gasoline prices that are helping to kill that party's polling numbers ahead of the US midterm elections in November.
But even IF Biden suddenly greenlights KXL, Ottawa is still actively sandbagging oil production in Canada.
Which means at least two very bad things for Canadian farmers: rising fuel costs and being outbid by oil producers for access to rail capacity.
The tragedy here is CAEPLA encouraged US Greens to look at the environmental and safety standards this country's leading grassroots property rights organization won in agreements with TC and Enbridge.
Standards that would have protected Midwestern farmers and the environment on a pipeline, KXL, so desperately needed today.
If KXL were operating today (and CAEPLA supports its resurrection), CANADIAN farmers would not need to worry as much about rising fuel prices and rail backlogs threatening their productivity and prosperity.
Biden Supports More Oil From Canada, But No Realistic Option to Get It Here
With crude still flirting with 8-year highs, President Biden needs to expand his options on increasing the flow of oil.
More Oil, No Pipeline
To appease the Greens president Biden still will not support the Keystone XL pipeline expansion.
But in an effort to pretend he is doing something about gas prices Biden Wants More Oil From Canada.
Canada has ample reserves under its soil to meet U.S. demand, said Kevin Birn, an analyst with S&P Global Commodity Insights. It just doesn’t have enough pipeline capacity to pump it here, he said.
“There’s not a limitation in terms of resource potential,” Mr. Birn said. “There’s a limitation of capacity.”
The XL expansion was to carry 830,000 barrels a day of Canadian crude from Alberta to Nebraska, where the pipeline would meet up with the existing Keystone pipeline, and then on to refineries on the U.S. Gulf Coast
Three Options
- Rail: Very Expensive
- Increase Pressure in Existing Pipelines: Already running near max capacity
- Keystone Pipeline: Ruled Out
Also note that Sonya Savage, Alberta’s energy minister, also has reservations over more oil.
Savage said that Canada could produce even more, but only if her country’s federal government changed policies that have emphasized greenhouse-gas reductions and reducing reliance on fossil fuels.
Telepathy and Wishful Oil
Wishing oil from Canada to the US will surely solve everything. The main problem is we are not unified. We need a concentrated focus.
Please mark your calendar: At 2:30 PM Central, on Wednesday April 6, we all need to wish telepathic oil delivery from Canada to the US.
When that works, we can then wish LNG straight out of the ground in the US to Europe.
Wishful thinking and telepathic oil, not more fracking, is the key to solving the problem displayed below.
What if Telepathy Fails?
I have high faith the Mish-sponsored telepathic delivery of oil from Canada to the US will start on April 6.
Then we will also discover that telepathy and wishful thinking will eliminate the need for fracking, pipelines, and LNG ports.
Rumor has it that Phil Flynn, the head energy trader for the Price Futures Group, is now totally on board with telepathic oil delivery.
In case you missed it, please see MishTalk TV With the Head Energy Trader at Price Futures Group
On the off chance that telepathy fails, the unfortunate news is De-Globalization and Inefficient Supply Chains Will Drive Up Inflation.
We find out soon enough if telepathy works. If not, Biden needs a new plan.
This post originated on MishTalk.Com.
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