FT: “The convincing Republican victory in the US midterm elections has raised hopes in the oil industry that the long-delayed Keystone XL pipeline for exporting crude from western Canada could at last secure the approval it needs.”
“Shares in Canadian oil sands companies, which would be among the principal beneficiaries, rose on Wednesday, with Suncor Energy closing up 3.4 per cent, Canadian Oil Sands up 4.7 per cent, and Cenovus Energy up 5.1 per cent on the Toronto Stock Exchange. Shares in TransCanada, the company that is leading the project, closed up 3 per cent.
With the Republican party adding control of the Senate to their majority in the House of Representatives, a bill to allow construction of Keystone XL is likely to be passed rapidly in both houses of Congress next year, putting pressure on President Barack Obama to approve it.
….On Wednesday President Obama said he would let the independent process play out and “gather up the facts”.
….Statoil, the Norwegian national oil company, said in September it was putting a proposed oil sands development on indefinite hold, in part because of “limited pipeline access”, as well as rising costs that were squeezing margins.”
Future Today
