Keystone XL Pipeline’s Economic Argument May Expire: Experts.
The juncture of falling oil prices colliding with TransCanada’s push for its US$8-billion Keystone XL pipeline may undermine the argument that the project makes economic sense, according to analysts.
Canadian oil prices hit a five-year low on Monday, dropping to US$40 a barrel.Benchmark brent oil also hit its lowest since July 2009, slipping from 65 cents to $61.20 per barrel.
Sandy Fielden, RBN Energy’s director of energy analytics, told the L.A. Times the impact of falling prices may rattle support for Keystone XL.
“The economics of this project are becoming increasingly borderline,” she said. But TransCanada isn’t showing any signs it’s fazed by the dropping prices.
Spokesperson Mark Cooper told the publication that its oil-shipper investors “have a good understanding of what the market needs over time. They do not make decisions based on short-term views or changes in commodity prices.”
