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I don’t think it would have much of an impact. There are a lot of untapped wells with much lower breakeven cost in west Texas that aren’t being exploited becaus

I don’t think it would have much of an impact. There are a lot of untapped wells with much lower breakeven cost in west Texas that aren’t being exploited because the North American industry has become much more supply disciplined. Bringing more capacity online won’t increase output unless the export markets become much better developed, which will take massive refinery and terminal investments on both sides of the Atlantic.

someelephant 5y ago
There is plenty of refining and export capacity in Texas. It would have an enormous impact on investment in oil production and therefore future oil prices in North America. Pipelines are much cheaper and safer than rail and would lower the cost of production and therefore the cost of the final product.
- xadhominemx 5y ago
  Is your argument that the pipeline would reduce cost of the oil sands? Because yes, it would. But that would lead to even more US wells shutting off at these price levels. I was talking specifically about natgas terminals and processing.
- tzs 5y ago
  > Pipelines are much cheaper and safer than rail and would lower the cost of production and therefore the cost of the final product. Would it? Oil is a commodity with a huge market. Isn't that oil going to fetch the same price no matter how it actually gets to the market? Lowering production costs for any given small producer should simply mean more profit for them rather than lower prices for buyers of the commodity.
Arubis 5y ago
But it’d make some guys richer! I’ll bet they’d like that.
- exabrial 5y ago
  how is that relevent?
  - Arubis 5y ago
    I question if that’s why we have to say No to this thing over and over and over and over again.
hotpotamus 5y ago
"supply disciplined" is a new one to me. I assume it's a euphemism for cartel?
- zaphod12 5y ago
  Nah, there's a boom and bust cycle to these industries. Prices go up, everyone exploits new wells and pours in money. Prices go down and a ton of folks go broke because the new wells are too expensive. You don't need any sort of cartel arrangement - the large companies and investors just learned their lesson after being burned a bunch of times.
- xadhominemx 5y ago
  They’ve all gone bankrupt at least once now and have learned their lessons

someelephant 5y ago

There is plenty of refining and export capacity in Texas. It would have an enormous impact on investment in oil production and therefore future oil prices in North America. Pipelines are much cheaper and safer than rail and would lower the cost of production and therefore the cost of the final product.

xadhominemx 5y ago
Is your argument that the pipeline would reduce cost of the oil sands? Because yes, it would. But that would lead to even more US wells shutting off at these price levels. I was talking specifically about natgas terminals and processing.
tzs 5y ago
> Pipelines are much cheaper and safer than rail and would lower the cost of production and therefore the cost of the final product. Would it? Oil is a commodity with a huge market. Isn't that oil going to fetch the same price no matter how it actually gets to the market? Lowering production costs for any given small producer should simply mean more profit for them rather than lower prices for buyers of the commodity.

Arubis 5y ago

But it’d make some guys richer! I’ll bet they’d like that.

exabrial 5y ago
how is that relevent?
- Arubis 5y ago
  I question if that’s why we have to say No to this thing over and over and over and over again.

hotpotamus 5y ago

"supply disciplined" is a new one to me. I assume it's a euphemism for cartel?

zaphod12 5y ago
Nah, there's a boom and bust cycle to these industries. Prices go up, everyone exploits new wells and pours in money. Prices go down and a ton of folks go broke because the new wells are too expensive. You don't need any sort of cartel arrangement - the large companies and investors just learned their lesson after being burned a bunch of times.
xadhominemx 5y ago
They’ve all gone bankrupt at least once now and have learned their lessons