Harper: "The politics of ruthlessness"

[KrazyHorse]

No it can't, of course. The point is that this is a substantial efficirncy upgrade on a substantial portion of US demand. Damage is being done to people in both countries by this delay.

[Tupac Shakur]

Actually, if Asher's article is to be believed, the US is benefiting from the lack of sufficient pipeline capacity to take Canadian oil all the way to the Gulf. Delaying the Keystone XL might very well be in America's best interest.

That being said, I agree with your efficiency argument.

[KrazyHorse]

That argument makes no sense. There is no possible equilibrium in which restricting capacity like that would improve the lot of the US.

[Tupac Shakur]

Why doesn't it make sense? Excess Canadian oil that can't reach the global market because of pipeline constraints is sold to American consumers at below market rate. Canada and global consumers lose, American consumers win.

[Asher]

It's not that it can't get to the global market, it's that it can't get to the idle refineries in Texas while it sits in storage in the mid-west as the mid-west refineries are already pretty much at capacity.

[Tupac Shakur]

Let's get as much cheap Canadian oil as we can while they build more pipelines to the Pacific.

“My sense is that it’s a really hollow threat,” Marx said. “That oil is not going anywhere, and in fact, the government is concerned that the tar sands are landlocked, which makes the Keystone the critical pipeline to get it to a coast where it can then be exported.”

http://www.politico.com/news/stories/1111/67874_Page2.html#ixzz1ehEMgeun

Right on. Call that bluff.

[notyoueither]

Thw West Coast pipeline will get built.

[notyoueither]

As for how, see title of thread.

He is also from Alberta.

[Tupac Shakur]

Thw West Coast pipeline will get built.

Good.

[notyoueither]

Less good than having access to the oil all to yourselves.

Asher has tried to mention security of supply, but you have ignored him.

[Tupac Shakur]

We can secure your supply any time we want in a serious crisis. Less serious instability like Asher mentioned would raise global oil prices (including Canadian oil), so it wouldn't matter where our oil was coming from excepting the minor efficiency losses KH highlighted.

[notyoueither]

I have mixed feelings about Keystone.

As a native, I'd like to see more of the upgrading and refining done domestically. The new premier of the province is looking to make friends in parts of Canada where historically there has been friction. She was recently in Ontario talking to their premier. The topic was making Canada an energy super-power. My mind wandered to the idea of large trans-Canada pipelines to upgraders and refineries in Ontario with access to the US and the Atlantic.

Hmmm, markets.

[notyoueither]

We can secure your supply any time we want in a serious crisis. Less serious instability like Asher mentioned would raise global oil prices (including Canadian oil), so it wouldn't matter where our oil was coming from excepting the minor efficiency losses KH highlighted.

When you can't get enough as you need, period, access is an issue.

[Tupac Shakur]

I don't even know what you're trying to say there. I suspect it's dumb.

[notyoueither]

Your hint is 1973.

You should really read a history book sometime.