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Keystone XL Needs Much Higher Oil Prices To Be Viable

Keystone XL Needs Much Higher Oil Prices To Be Viable

Submitted by Arthur Berman via OilPrice.com,

The Keystone XL Pipeline (KXL) is a bet on much higher oil prices several years from now. It will take at least $85 oil prices to develop the new oil sand projects needed to fill the pipeline.

It is also a bet that U.S. tight oil output will continue to grow and will need heavy oil to blend for refining. Both bets are risky.

A Bet On Higher Oil Prices