The Keystone XL project would carry 830,000 barrels per day of crude oil from Canada to Nebraska. Most of that output would be sent to US refineries. The move is sought to kill over 10,000 jobs and $2.2 Billion directly out of workers pockets and is “not what Americans need or want right now” stated Andy Black CEO of The Association of Oil and Pipelines. This move is clearly the beginning of the new administration’s stance on the future of energy in the United States.
Environmental groups, US landowners and Native American tribes along with other opponents of the project applauded the move. The project had been stalled for over 10 years before the Trump administration revived it. Regardless of which side of the debate aligns with your views we need fossil fuels to run the country and provide a stable infrastructure as move toward an aggressive renewable energy future.
This debate is going to mushroom over the next four years under the Biden administration. Striking a delicate balance of fossil fuels and renewables needed to fuel the engine that will accelerate the worlds growth over the next 50 years will be one of the most compelling issues of our time. Addressing climate change and reducing greenhouse gas emissions (GHG) will be a priority of the Biden era. In the grand scheme of fossil fuel energy throughout the US the revocation of the Keystone project may be insignificant but what it represents from a policy standpoint is nothing but.
So what does that mean for US energy prices? Given the uncertainty that the world is facing due to the COVID-19 pandemic and the financial fallout created by world wide shutdowns, the short term consensus is prices should remain neutral. We currently are experiencing historic lows in Nat Gas (NG Feb $2.55/MMbtu) and Oil (WTI Feb $52.98/bbl). As renewables continue to gain momentum in Government policy as a solution to GHG reductions and evolve through technology they are now a reality for delivering real world power generation solutions. How quickly and effectively these clean energy resources replace fossil fuels will be the question that stands at the heart of the debate.
Who We Are
P2P Energy Solutions is an Energy Advisory and Consulting firm specializing in procuring and trading energy on behalf of our customers located in deregulated markets.
At P2P Energy Solutions, our mission is simple – to educate all energy consumers regarding the benefits of energy deregulation and the positive impact that choice has on them. We give you, our client and most valuable asset, the “Power 2 Profit.”