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How much *less* tar sands oil gets transported over the US without the Keystone XL extension? (Original Post) Recursion Dec 2014 OP
I don't know that answer postulater Dec 2014 #1
That is really not an issue for me. SamKnause Dec 2014 #2
Why would it raise prices? FreeJoe Dec 2014 #34
I care about how much less it cost to transport by pipeline. Reduce profitability TheKentuckian Dec 2014 #3
Keystone XL would do 730k bpd, 600k bpd goes through BNSF (rail). joshcryer Dec 2014 #4
Thank you. But there are existing pipelines Recursion Dec 2014 #7
Yes. joshcryer Dec 2014 #8
In recent stories that deal with the price of oil, they have admitted that the cost karynnj Dec 2014 #24
Estimates vary. Widely. Here's a reasonable analysis that places the number at 1 billion barrels. DanTex Dec 2014 #5
Makes no effen difference. 99Forever Dec 2014 #6
Keystone already goes over Ogallala. joshcryer Dec 2014 #9
You know, we HAVE the engineering to ensure any pipeline would be safe Drahthaardogs Dec 2014 #10
Bull shit. 99Forever Dec 2014 #11
What do you mean bullshit? Are you serious? Drahthaardogs Dec 2014 #12
See Fukushima 99Forever Dec 2014 #13
So now an oil pipeline is the same thing as nuclear core meltdown? Drahthaardogs Dec 2014 #14
Lies are lies are lies are lies. 99Forever Dec 2014 #15
Why is TransCanada investing 8B in this worthless venture? Warren Stupidity Dec 2014 #16
You tell me. Do you honestly think they expected crude prices < $60 / barrel when they started? (nt) Recursion Dec 2014 #17
And there it is: those goalposts just moved 100 yards. Warren Stupidity Dec 2014 #18
Yeah, and let me be clear I'll be the first to say they have moved pretty clearly. Recursion Dec 2014 #19
Tar sands break even around $30 a barrel. joshcryer Dec 2014 #21
Only if refining is free, unless I'm misreading that? (nt) Recursion Dec 2014 #22
Let me put it another way Recursion Dec 2014 #23
This is unquestionable. joshcryer Dec 2014 #25
I have to disagree, Josh, you're assuming no costs in the transfer Recursion Dec 2014 #26
The estimate for Keystone XL is $9 a barrel: joshcryer Dec 2014 #28
Well, then, that explains our difference of views Recursion Dec 2014 #30
Yeah, not sure about the costs. joshcryer Dec 2014 #35
Ever read Moby Dick? Recursion Dec 2014 #36
It's 730k bpd. joshcryer Dec 2014 #20
Investment in the wrong direction. Invest the money in renewables on point Dec 2014 #27
The XL is for Extra Large, versus the mini pipeline of the current just Keystone line. Fred Sanders Dec 2014 #29
But it doesn't break even at 40. It doesn't right now break even at 65. This is happening at a loss Recursion Dec 2014 #31
A solid plan is to leave it in the ground, the Tar Sands will be a major tourist attraction by 2100, a Fred Sanders Dec 2014 #32
ZERO, it would still be transported by rail and truck. It will not stop the production, the Thinkingabout Dec 2014 #33

SamKnause

(13,108 posts)
2. That is really not an issue for me.
Sun Dec 14, 2014, 09:02 AM
Dec 2014

I don't know why we would risk our country's environment to benefit Canada and the Koch brothers.

I live in the Midwest.

If the Keystone pipeline is approved our gas prices are estimated to go up 20 to 40 cents per gallon.

TheKentuckian

(25,026 posts)
3. I care about how much less it cost to transport by pipeline. Reduce profitability
Sun Dec 14, 2014, 09:36 AM
Dec 2014

and less will be extracted or moved.

I care about the volume of an "accident" being the difference between bad and a travesty.

I care about the path creating unacceptable risk to the water supply.

I don't have the numbers to answer your question but again because the cost of transport will be down and labor reduced, it is likely to be a significant increase. If it wasn't more and significantly cheaper there would be no interest in the pipeline from the people wanting to build it would it?

The more you drive up the cost, the more likely it stays in the ground.

joshcryer

(62,276 posts)
4. Keystone XL would do 730k bpd, 600k bpd goes through BNSF (rail).
Sun Dec 14, 2014, 09:49 AM
Dec 2014

As it stands tar sand production has maxed out the Keystone (already built, eastern) line.

http://www.desmogblog.com/2014/09/25/u-s-oil-imports-canada-hit-all-time-high-despite-opposition

http://www.desmogblog.com/2014/02/05/keystone-xl-northern-leg-fracked-oil-pipeline-tar-sands

They're moving to rail which is why Warren Buffet bought up BNSF, but he still supports Keystone: http://www.forbes.com/sites/zackomalleygreenburg/2014/03/03/warren-buffett-is-still-bullish-on-rail-and-keystone/

So, to answer your question, between 100-200k bpd would be possible, if they stopped rail transport (which has kill around 50 people due to "rail bombs" so far), if not it'd be 730k bpd on top of what's already going.

Recursion

(56,582 posts)
7. Thank you. But there are existing pipelines
Sun Dec 14, 2014, 10:03 AM
Dec 2014

XL to current rail doesn't capture all current transport, dis it?

joshcryer

(62,276 posts)
8. Yes.
Sun Dec 14, 2014, 10:38 AM
Dec 2014

Something like 2.5 million bpd goes through Keystone (not XL).

The green line here:



Keystone XL is actually more beneficial to the Bakken since it allows production ramp up.

Either way it's going by rail if it's not going by Keystone XL. If you build Keystone XL then you can increase it even more, or ban rail, since rail has killed people and it's far more dangerous than pipelines.

karynnj

(59,504 posts)
24. In recent stories that deal with the price of oil, they have admitted that the cost
Sun Dec 14, 2014, 02:20 PM
Dec 2014

via Keystone XL is lower than alternatives --- and with the existing price, they may stop extracting the oil as it is too expensive. (Even with Keystone XL the price is becoming too low.)

From the beginning this is why the original State Department assumption that the oil will be used one way or the other -- so any estimates of its carbon should not be in the analysis were wrong. If the transport cost is less, it HAS to raise the threshold for when extracting the harder to get oil.

DanTex

(20,709 posts)
5. Estimates vary. Widely. Here's a reasonable analysis that places the number at 1 billion barrels.
Sun Dec 14, 2014, 09:49 AM
Dec 2014
https://energyathaas.wordpress.com/2014/03/24/it-just-doesnt-add-up-why-i-think-not-building-keystone-xl-will-likely-leave-a-billion-barrels-worth-of-bitumen-in-the-ground/

Another few points, some of which are made in the article.
First, it's gonna depend a lot on the price of oil. Shipping by train, which at least in the short term is the other alternative, costs something like 5 or 10 dollars a barrel more. So it shifts the break-even point for tar sand oil by that much. If oil stays at 60, then we're probably already below the break-even point for a lot of the dirty oil projects anyway, but if it goes back to like 70 or 80, then the extra transportation cost could make a big difference. Aside: how crazy is it that oil was at 100 or even 110 just a few months ago and now we're below 60?

Also, even if in the long run all the oil would get pumped out either way, stopping Keystone will certainly delay this, which buys more time for either renewable energy to become economical, or for humanity to wake up to the climate threat and pass some real carbon treaty.

Finally, there's the philosophical point, which is that if all the oil in the tar sands gets burned, then the planet is finished, so building Keystone, whose purpose is to ensure that tar sands oil gets burned as quickly as possible, is akin to facilitating mass suicide.

99Forever

(14,524 posts)
6. Makes no effen difference.
Sun Dec 14, 2014, 10:00 AM
Dec 2014

Can we pipe it over YOUR drinking and living water supply, knowing full well that there it is almost guaranteed to fail and leak into it? My adult children and grandkids LIVE on top of the Ogallala Aquifer and DEPEND on it for their very existence.

NO FUCKING PIPELINE, NO FUCKING WAY.

Drahthaardogs

(6,843 posts)
10. You know, we HAVE the engineering to ensure any pipeline would be safe
Sun Dec 14, 2014, 10:47 AM
Dec 2014

Now, will they actually USE such engineering -- probably not.

They will use cheap ass, poor tolerance, Chinese-steel. They will not put computers with automated shut offs when a pressure differential is detected, thus any spill would be small and not cause a lot of harm.

I am all for infrastructure if they build it like they used to build things forty years ago. Sadly, they don't.

99Forever

(14,524 posts)
11. Bull shit.
Sun Dec 14, 2014, 10:52 AM
Dec 2014

We've that kind of blatant lie too damned many times to even begin to take it seriously.

See Exxonn Valdez. See Deep Sera Horizon.


Save it for the Teabagger chumps.

Drahthaardogs

(6,843 posts)
12. What do you mean bullshit? Are you serious?
Sun Dec 14, 2014, 10:57 AM
Dec 2014

Do you really think we do not posses technology to do this safely? We don't use it because our corporations suck and buy everything as cheaply as possible, but it does not have to be that way.

As for Valdez, I am from Alaska. The captain was drunk off of his ass. He never even slowed down. It is a wonder the ship did not split it two.

The Deep Water Horizon was most definitely caused by cheap materials with poor tolerances. The cement job was not up to protocols. Inspections were not done properly.

Drahthaardogs

(6,843 posts)
14. So now an oil pipeline is the same thing as nuclear core meltdown?
Sun Dec 14, 2014, 11:11 AM
Dec 2014

Funny. How many cups of coffee did you have this morning?

 

Warren Stupidity

(48,181 posts)
16. Why is TransCanada investing 8B in this worthless venture?
Sun Dec 14, 2014, 01:50 PM
Dec 2014

As I've learned here XL makes no real difference in transportation of tar sands oil. I guess TransCanada is run by some pretty stupid people who are blowing 8B on a useless add on to existing facilities.

 

Warren Stupidity

(48,181 posts)
18. And there it is: those goalposts just moved 100 yards.
Sun Dec 14, 2014, 01:56 PM
Dec 2014

The issue of the saud gangsters driving oil prices down in order to disrupt and/or destroy high cost extraction is a completely different topic from the OP. You owe the OP an apology for such a blatant hijack ... oh wait...

Recursion

(56,582 posts)
19. Yeah, and let me be clear I'll be the first to say they have moved pretty clearly.
Sun Dec 14, 2014, 01:58 PM
Dec 2014

The Saud gangsters are doing there best to keep those of us in the Western Hemisphere out of the party, even if that means selling at a loss for the next decade. (And even if it means killing the Bolivarian Republic of Venezuela -- actually the Saudis would love that anyways.)

Recursion

(56,582 posts)
23. Let me put it another way
Sun Dec 14, 2014, 02:16 PM
Dec 2014

With international LSC at $58, we are entering a regime we simply haven't been in before.

joshcryer

(62,276 posts)
25. This is unquestionable.
Sun Dec 14, 2014, 02:27 PM
Dec 2014

Tar sands are probably OK until it hits $40. Bakken is in trouble below $50 (some say some Bakken is OK at $42).

The Saudi's want to make sure we feel it. Interesting times ahead indeed.

Keystone XL only shaves a few bucks off of rail transport, too, so it's like $8 per barrel. Anything below $38 a barrel is going to seriously harm Bakken and Canadian tar sands.

The thing that puzzles me is that production can be ramped right back up as soon as the price goes up happens. It's not going to hurt anyone in the long term. And a lot of Bakken producers already have sunk costs on thousands of rigs. They'll pump anyway since they can't set the price. They are OK for a few years yet.

I don't understand the Saudi's strategy.

Recursion

(56,582 posts)
26. I have to disagree, Josh, you're assuming no costs in the transfer
Sun Dec 14, 2014, 02:30 PM
Dec 2014

My cocktail napkin ramblings tell me it takes at least $12 to get a barrel of crude through an entirely completed pipeline. Do you think it's less?

joshcryer

(62,276 posts)
28. The estimate for Keystone XL is $9 a barrel:
Sun Dec 14, 2014, 02:35 PM
Dec 2014
To be less expensive than other pipeline alternatives, TransCanada would probably need to charge less than $9 a barrel, said Patrick Kenny, an analyst at National Bank Financial in Calgary. Before boosting costs, TransCanada had been planning to charge $7 to $8 a barrel to use the pipeline, Girling said in a May interview.

http://www.bloomberg.com/news/2014-11-04/transcanada-says-keystone-xl-project-costs-rise-to-8-billion.html


The cost of tar sands is around $20-30 less per barrel because it is nasty and only the gulf is prepared to refine it:

Because tar sands oil is a much lower-quality version of crude oil, it sells at $20 to $30 dollars less than conventional crude. With conventional crude oil now selling for about $80 a barrel, the price of tar sands oil has fallen to around $60 a barrel. It also costs about $25 per barrel to move tar sands crude by rail from Alberta to the Gulf of Mexico, Palmer says. The Keystone Pipeline would cut that transportation price from $25 to $9 a barrel, which is why oil companies are so eager to see the pipeline move forward.

http://www.pri.org/stories/2014-10-21/big-companies-are-pulling-plug-their-projects-albertas-tar-sands


Looks like I was off on the cost of rail by $15. I thought it was much lower than $25. So tar sands gets in trouble at $55, and we're almost there.

Recursion

(56,582 posts)
30. Well, then, that explains our difference of views
Sun Dec 14, 2014, 02:41 PM
Dec 2014

If they're right about that, I have to think about this more.

joshcryer

(62,276 posts)
35. Yeah, not sure about the costs.
Sun Dec 14, 2014, 03:05 PM
Dec 2014

I wasn't prepared for it, since I had recently seen that desmodo blog about Keystone / XL Bakken, and decided to link it, since you were just asking about raw transport ability over Keystone XL. I've even seen tar sand costs as low as $9 a barrel. It seems as if they're all over the place. Whatever they're doing up in Alberta it's crazy (just look at any pictures, satellite photos in particular). It's some sort of insane environmental disaster.

If you really want to go deep calculate in the environmental costs of cleanup and CO2 release, as well, heh. I suspect in the end it's not even profitable, just a shell game.

joshcryer

(62,276 posts)
20. It's 730k bpd.
Sun Dec 14, 2014, 02:00 PM
Dec 2014

Whether or not rail continues. TransCanada gets transport costs. If rail continues, then TransCanada gets to profit off of Bakken one way or another.

Either way it's 730k bpd of transport fees they can get extra.

My comments about rail is just me trying to be sensible, if you open up Keystone XL is makes sense to block the rail transport, because it's killed almost 50 people and there have been three major accidents since 2010.

I don't think that would happen though.

So from the tar sand point of view, 730k bpd can be pumped extra, but if they stop rail, only 100k extra can be produced. Either way TransCanada gets the total 730k bpd transport fees.

on point

(2,506 posts)
27. Investment in the wrong direction. Invest the money in renewables
Sun Dec 14, 2014, 02:34 PM
Dec 2014

Society has only so much money to invest. Putting billions into oil infrastructure wrong way to go.

Plus, every impediment to tar sands needs to be put in its way to shut down a horrible extraction technique.

Pipeline is also a harm to local environment and a risk to aquifer.

There just is no good reason for this pipeline.

Fred Sanders

(23,946 posts)
29. The XL is for Extra Large, versus the mini pipeline of the current just Keystone line.
Sun Dec 14, 2014, 02:36 PM
Dec 2014

And if tar oil breaks even at 40, what kind of windfall profits are they making at 100+? And who gets these windfall profits?

Profits from the Export of foreign Canadian owned chemically thinned tar oil transported through America......the stuff goes through one foreign land through American domestic land and then to more foreign lands...interesting part always left out.

Recursion

(56,582 posts)
31. But it doesn't break even at 40. It doesn't right now break even at 65. This is happening at a loss
Sun Dec 14, 2014, 02:42 PM
Dec 2014


I'm open to opposing the pipeline extension, I just need a solid plan.

Fred Sanders

(23,946 posts)
32. A solid plan is to leave it in the ground, the Tar Sands will be a major tourist attraction by 2100, a
Sun Dec 14, 2014, 02:46 PM
Dec 2014

reminder to our children of how close we came to bombing the planet into oblivion with carbon.

Thinkingabout

(30,058 posts)
33. ZERO, it would still be transported by rail and truck. It will not stop the production, the
Sun Dec 14, 2014, 02:56 PM
Dec 2014

production may slow down because the price of oil has gotten lower than the cost of producing the tar sands. Let's be honest with our selves, we are not in any position to give up our need and desire for oil and its products, it would be more beneficial to protest the slowness of developing solar, wind and water power production. This is renewable sources which will benefit generations to come, and a clean alternative. Raising hell at the oil companies to produce a product which we demand is not going to go anywhere.

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