Some energy analysts say the $5.3-billion Keystone XL is no longer necessary for moving Canadian crude.
According to the Financial Post, analysts at Canaccord Genuity say it’s because the fear of the pipeline being rejected has forced the industry to explore other methods such as rail.
The New York firm estimates about 130,000 barrels per day of Canadian crude is moving by rail and could increase to 425-thousand by the end of next year.
The Keystone XL is expected to move 465,000 once stripped of thinning materials
Managing Director and Senior Oil and Gas Analyst Phil Skolnick says rail will be able to do that, and more.
September 10th, 2013