The Economist recently published an article on the foreseeable future of Canada’s tar sand development. Included is a discussion of the approaching bitumen bottleneck: without new development, the midwestern US coking facilities will be filled to capacity processing Canadian bitumen. Keystone XL, a $7 billion pipeline proposed by TransCanada, aims to send an additional 510,000 barrels/day of Canadian oil to Texas. The project could additionally allow for increased international shipments.
Meanwhile environmental groups continue to fight development and some US states, including California, don’t want to support the environmentally damaging production of this “dirty oil.”
The fight over the production of these vast northern reserves continues, and if the US isn’t willing to buy Canada’s oil, China would be only too happy to take delivery. What do you think about the use of this resource?
Read the full article here: Muck and Brass