crude oil is so 2008
Oil companies are just not that into Keystone XL.
The pipeline’s operator, TransCanada, is struggling to track down oil producers and refiners who want to invest in transporting crude oil from Canada to the United States.
This follows a decade-long fight to construct Keystone XL’s northern leg, which finally got President Trump’s OK in March.
Lately, crude oil hasn’t looked like a great investment. When TransCanada proposed the pipeline extension in 2008, a barrel of crude cost $130. Now it’s down to $45, largely due to U.S. shale development and a glut of crude oil in the market.
The Wall Street Journal reports that TransCanada’s chief exec has no intention to give up on the pipeline and believes it’ll pull a long-term profit. However, the lack of interest from investors doesn’t bode well for the pipeline, especially since its estimated costs have jumped from $7 billion to $8 billion.