A NEW PROBLEM FOR KEYSTONE XL PIPELINE: OIL COMPANIES DON’T WANT IT
TransCanada Corp. moved ahead with the hotly contested Keystone XL pipeline project despite decades of protests only to run into another problem: customers don’t want to use it to ship oil.
“Delayed for nearly a decade by protests and regulatory roadblocks, Keystone XL got the green light from President Donald Trump in March. But the pipeline’s operator, TransCanada Corp., is struggling to line up customers to ship crude from Canada to the U.S. Gulf Coast,” write Christopher M. Matthews and Bradley Olson.
Customers are balking at signing up to use the estimated 3,000-mile-long pipeline because oil prices have tanked since 2008 when TransCanada first initiated the project.
In a world awash in low-price oil, Canadian crude doesn’t look as attractive as it once did.
The Calgary, Alberta-based firm has said it is making progress with customers and wants enough clients to fill 90% of Keystone’s capacity before it proceeds. The company has said construction could begin next year and finish as early as 2020.
TransCanada has spent $3 billion to date on Keystone XL.
BP WRITES OFF EXPLORATION ASSETS IN ANGOLA
BP PLC is set to exit some gas prospects offshore Angola, writes Sarah Kent.
The British oil-and-gas firm said it will give up its 50% stake in a license off the African country’s south coast after deciding it wasn’t worth developing a 2014 gas discovery there.
The firm also said it would take a $750 million write-off from its second quarter earnings as a result of poor exploration results in the region.
BP has operated in Angola for decades and views its operations there as important. But a changing energy landscape with chronically low oil prices has forced some firms to move away from expensive exploration in frontier regions, like some parts of Angola, and pushed them back to areas where they already have operations and knowledge of the geology.
Oil prices were up for the seventh straight session Friday in their longest streak of gains since April, as investors continued to respond to last week’s drop in U.S. production.
Brent crude, the global benchmark, rose 0.63% to $47.72 a barrel in London midmorning trading. On the New York Mercantile Exchange, West Texas Intermediate futures were up 0.62%, at $45.21 a barrel.