While the cancellation of the Keystone XL Pipeline was likely, it’s important for those in the oil and gas industries to understand potential implications. Robbie Fraser, Manager of Global Research & Analytics for Schneider Electric, has been advising clients that the move was a foregone conclusion, but also shared the below comments on what the move means for the oil and gas markets.
“While the move punctuates the increasingly strong focus of climate considerations in the oil and gas space, it has little to no impact on current market dynamics. At minimum, the project had little chance of making progress in the next few years after the Biden administration moved to block the pipeline with an early executive order.
“While a completed pipeline would have brought clear benefit to Canadian producers and some US refiners, its ability to impact consumer fuel prices would have been diluted by the global nature of crude and product markets. In short, the move is a headline example of a global marketplace that is increasingly shifting away from traditional fossil fuel projects in favor of cleaner energy. However, this latest decision was hardly surprising, and has little ability to further impact crude, gas, or electric power prices. As always, movement in wholesale diesel and gasoline prices is overwhelmingly driven by global crude price dynamics, rather than region-specific developments.”
Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.
The June issue of World Pipelines includes a regional report on Russia’s most prominent oil and gas pipeline projects, as well as technical articles on design standardisation (Burns & McDonnell), corrosion (Tesi S.p.A.), hydrogen blending in pipelines (ILF) and much more. Don’t miss the dedicated Coatings Q&A on p. 23, with Winn & Coales International Ltd.
Read the article online at: https://www.worldpipelines.com/project-news/14062021/schneider-electric-comments-re-keystone-xl-cancellation/