KXL Pipeline Could Benefit Gulf Coast Refiners, Compete with Venezuelan Imports

SUGAR LAND--September 14, 2015--Researched by Industrial Info Resources (Sugar Land, Texas)--One of the many arguments against the Keystone XL (KXL) pipeline project by TransCanada Corporation (NYSE:TRP) (Calgary, Alberta) is that the oil it transports will be export-bound to non-U.S. markets and provide little, if any, benefit for American refiners. While it is true that Canadian crude oil could be exported via the Gulf Coast, the realities of the market are that heavy, high-sulfur Western Canadian Sour (WCS) crude would find a home in the Gulf Coast market, likely displacing the similar heavy, sour crude that comes from Venezuela. Similarly, the WCS would pass through Cushing, Oklahoma, a hub for physical commodities trading, with access to Midwest refiners who could handle heavy, sour crude. Within this article: Potential impact of Canadian crude oil pipeline projects on U.S. markets.