A 2017 oil price revival
According to the International Energy Agency IEA by 2017, the supply demand curve will move significantly in the opposite direction.. this will lead to a rapid rise in US oil output from shale projects : +17% -> 5.2 million barrels per day.
oil price recovery in 2016 ?
according to key people in the petroleum industry:
..there's "evidence that future production will be curtailed,” chief economist and portfolio manager at Nuveen Asset Management
-- this is already ringing true in Canada where Cenovus Energy has already made two capital spending cuts with heavyweight Husky Energy cutting back as well.
.. OPEC is saying that US gasoline demand will increase 1.17m bpd -> 92.3m bpd next year.
US shale production is being hit hard by the lower price.. in the second half of this year, a lot of marginal barrels will disappear from the market and demand will rise for OPEC.. this allegedly is a result of a decision back in 2014 by OPEC to maintain production levels in spite of the price correction.
Approving Keystone Pipeline Makes Sense
consider the ramifications of NOT having it built AND facing the steep rise in oil price - oil price increase that will happen by 2017
70% of Americans support lifting the present ban on oil exports to Mexico.. among other countries - and this is something the President is currently mulling. Approving Keystone XL will give America's largest refineries first dibs on 100+ years worth of crude oil reserves (with the best flow through rates) and that makes perfect sense ! even the state of Nebraska, home of the aquifer which environmentalists were initially considering their key to winning the debate, now supports the project after careful consideration convinced even them that the benefits far outweigh any conceivable risks; safeguards include 24 hr a day surveillance, state of the art monitoring/sensor systems, cutting edge pipeline technology - not to mention a new route that puts more spacing between it and the more sensitive areas of the acquifer.
Back in 2012 democratic presidential nominee Hillary Clinton put her support behind it - a future president Clinton will get the keystone pipeline approved !
New Technologies Makes Oil Pipelines Safer (and cheaper) Than Rail For Petroleum Transport
Currently, the Canadian oil that does eventually get down to Houston's oil refineries is coming in on rail cars which makes the end products more expensive to buy. As illustrated by the October 2014 Lac-Mégantic, Quebec rail disaster, oil-by-rail is not always a safer method of transport.