Keystone, on the Ropes, Suggests Pipeline to Run on Solar, Wind

January 18, 2021

For a guy that was supposed to be a pushover, President Biden is coming out of the starting gate with some pretty big punches. On day one, the US will rejoin the Paris Agreement, and cancel the Keystone Pipeline.

Got a bump on this from my friend Dr. Jeff Masters, who added, “Not the Onion.”

Above, my friend Keith Schneider, the Sage of Benzonia Michigan, had the lay of the land right in 2017, when he weighed in on pipelines in the Age of Trump. (which is now, obviously, at an end – knocking on wood)

Wall Street Journal:

WASHINGTON—The Keystone oil pipeline’s developer plans to announce a series of overhauls—including a pledge to use only renewable energy—in a bid to win President-elect Joe Biden’s support for the controversial project.

Aides to Mr. Biden have previously said he plans to revoke the permit, and Canada’s CBC News reported late Sunday that Mr. Biden plans to do so in one of his first actions after taking office this week.

Mr. Biden’s team declined to discuss that report, but has said his position on the pipeline hasn’t changed.

In a bid to save the project, Canada’s TC Energy Corp. TRP 0.29% is committing to spend $1.7 billion on solar, wind and battery power to operate the partially completed 2,000-mile pipeline system between Alberta, in western Canada, and Texas, company officials say. They also are pledging to hire a union workforce and eliminate all greenhouse-gas emissions from operations by 2030.

The company’s plans reflect new realities at a time when Democrats are taking commanding positions in Washington, and in an era of growing environmental and social concerns.

“In our view, this is the most sustainable and environmentally friendly pipeline project that is ever been built,” Richard Prior, president of TC Energy’s Keystone XL expansion project, said in an interview. “This is groundbreaking stuff for an energy infrastructure project of the size and scale of Keystone XL.”

In other news, Klu Klux Klan announced they will wear only organic cotton bedsheets.

Economist – 2/29/2020:

Alberta has lured many an oil man in recent years.
Tapping new wells of thick Canadian bitumen and processing it into crude is expensive, but the break-even oil price for operating an existing one can be as low as $25. Large reserves and low depletion rates mean that companies can offer measured growth and attractive dividends. Instead of lubricating profits, however, Canada’s tar sands are bunged-up with protests against new pipelines. Most international oil firms have fled. The latest firm to retreat is Teck Resources. On February 23rd the Canadian company scrapped plans for a C$20bn ($15bn) oil-sands mine. Canada has not yet aligned “climate policy considerations” with “responsible energy sector development”, wrote Teck’s boss, Don Lindsay. Without regulatory approvals, an investment partner, new pipelines and a high oil price, Teck might as well have sought the Moon.

6 Responses to “Keystone, on the Ropes, Suggests Pipeline to Run on Solar, Wind”

  1. pendantry Says:

    In other news, Klu Klux Klan announced they will wear only organic cotton bedsheets.

    Heh, nice 🙂 👍

  2. John Kane Says:

    Jason Kenny, the Premier of Alberta is very upset. Of course he does seem to live in another universe where QAnon theories wold be considered mundane. He may still believe in a flat earth.

  3. Glenn Martin Says:

    So they’re willing to eliminate as much as 5%, to be very generous, of the carbon emissions of their oil. What a bargain!

  4. andrewfez Says:

    Morningstar, which analyzes equity stocks for LONG TERM investments, still has Enterprise Production Partners, and Enbridge (pipeline companies) as 4 star buys and the rating has been like that all year. Though we’re starting to see these companies buy renewable assets. I don’t think they can sustain the huge dividends with a renewable portfolio but I think they will survive the transition to clean energy.

    Dominion had its fair value RAISED last year after selling their pipeline to Warren Buffet and investing in offshore wind.

    Albemarle, a lithium mining company has rallied strongly over 2020, has has AES, a renewable focused electricity provider. My biofuels stock REGI has gone from $12 when I bought it to $92. First Solar has doubled in price over the last year.

    Basically the renewable holdings in my retirement account (everything above) had a nice 2020.

  5. rhymeswithgoalie Says:

    Hey, don’t knock wood! It stores a lot of carbon.

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