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re: Fill me in on the Keystone XL Pipeline
Posted on 12/17/14 at 2:55 pm to DelU249
Posted on 12/17/14 at 2:55 pm to DelU249
quote:
When you greatly reduce costs, you lower the price for your product.
It also forces other sellers in the market to compete with that lowered cost. Even if they're a cartel
I know that sounds good and in a economic vacuum that is true...BUT, in this case, the reason the pipeline is being built is to get the oil to the gulf coast where the producers can get a higher price for their oil. The first leg has already been built from Cushing to the Houston Ship Channel...Permian and MidCon players wanted that bad because all of their oil was stuck up in Nebraska and they were getting a very low WTI price with additional deducts for the oil coming out of the Permian.
Also, transportation costs of oil sands isn't going to change the market price of oil.
1
Posted on 12/17/14 at 3:08 pm to cwill
Yeah a higher price for them but a lower price than their competitors, and the dominoes fall
Also, since their little deal would require U.S. Support, they're not about to start colluding to control prices with any desert people lest they lose their cash cow
Also, since their little deal would require U.S. Support, they're not about to start colluding to control prices with any desert people lest they lose their cash cow
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