Venezuelan oil, which has similar greenhouse gas emissions intensity as the oil sands, will be the biggest beneficiary if the U.S. State Department rejects the Keystone XL pipeline, according to a new study.
“Today, the majority of heavy supply on the USGC [U.S. Gulf Coast] comes from Venezuela (0.8 mbd), followed by Mexico (0.7 mbd); the rest is from smaller suppliers including Colombia and Brazil,” Jackie Forrest and Aron Brady, analysts at IHS CERA, wrote in study published Thursday.
“If Gulf refiners cannot access Canadian heavy oil, the most likely alternative is Venezuelan supply, which is projected to grow based on ongoing investments.”
TransCanada Corp.’s proposed pipeline to transport Alberta crude to the Gulf Coast has been thrown into doubt after President Barack Obama downplayed the project’s job-creating potential and said he will approve the project only if it does not “significantly exacerbate the problem of carbon pollution.”
Continued at;http://business.financialpost.com/2013/ ... =59d6-4618