January 27, 2017
A Reuters piece carried by the New York Times told readers:
“If built, TransCanada’s Keystone XL from Alberta to Nebraska would yield about $2.4 billion (C$3.2 billion) a year for Canada, split between government revenues, shareholder profits and re-investment into the still-recovering Canadian oil patch, according to a Conference Board of Canada research note prepared for Reuters on Thursday.
“That’s because the 800,000 barrels-per-day (bdp) line would provide cheaper shipping and a new outlet for the country’s vast but landlocked oil sands reserves, giving them increased access to the stronger U.S. market. Canadian producers could likely command around $2 more per barrel, analysts and investors said.”
Okay, let’s check this one. If the pipeline is used at its 800,000 barrels-per-day capacity, it will carry 292 million barrels over the course of a year. If it will lead to an additional $2 per barrel for Canadian producers, as the article reports, this implies an increase in revenue of $584 million a year. That is quite a bit less than the $2.4 billion a year touted in the first paragraph.
This looks like another case where someone is wrong on the Internet.
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