Fairplay: Keystone XL Veto May Boost Tankers
“The recent veto by President Obama of the proposed construction of the Keystone XL pipeline project from Canada to the US could have positive implications for tanker owners as Canadian oil sands producers seek markets for their increasing production. . . . Among the winners from this veto, Poten sees tanker owners and non-Canadian oil suppliers benefiting from the US’s continued reliance on imported oil. Additionally, VLCC, Suezmax and Aframax owners would benefit if the Northern Gateway pipeline to Kitimat is developed. China would also see increased diversification of crude supplies. Losers would include the US Gulf Coast refiners, which would remain reliant on more expensive seaborne oil supplies. American consumers will also lose out as oil imports will continue from abroad.”
