SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: teevee9/10/2011 1:54:29 PM
2 Recommendations  Read Replies (1) of 206098
 
Why the XL pipeline will probably be delayed and the impact on oil sands stocks-

All of the oil sands stocks are selling off. I believe it is because there is no outlet for increased production so brown fields production expansions and green fields projects are in jeopardy. Stuck as captive suppliers with a bottleneck to to get oil out, capped production growth and faced with cost creep, the share price of oil sands producers will continue to drop.......until they are takeover candidates. Once giant, integrated US oil companies have bought up what thy want at far lower prices (just a higher percentage of ownership and not outright takeover-ie Exxon's 80% ownership of Imperial Oil), then Washington will approve Keystone and not before. The US has been successful with this kind of foreign economic policy strategy, the best example being Canadian lumber. The difference being In the case of lumber, the tool was tariffs, however with oil sands, it is pipeline approvals. It is very unlikely the Canadian Federal Government in Ottawa will wake up and and approve oil pipelines and terminals to west coast. Watch for an announcement from Washington delaying the pipeline and the immediate sharp drop in oil sands stock share prices. I wouldn't touch oil sands stocks until the XL pipeline is approved-until then, I expect oil sands share prices to continue to drop.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News