Sunoco Logistics announces new pipeline project

(Reuters) - Energy logistics provider Sunoco Logistics Partners LP announced a new pipeline to increase flow of crude oil from west Texas to Gulf Coast markets.

If Keystone XL is not approved by the Barack Obama administration, it will unleash shock waves through the halls of policymakers in Canada and the United States alike given the bilateral importance of energy security, notes Greg Pardy, an analyst at RBC Capital Markets. “Progress on Canada’s export pipeline solutions would likely become its top national priority,” Pardy says.

The EIA last week released a nice summary of planned additional U.S. pipeline capacity.

Canadian heavy oil prices slid a further $4 as traders absorbed news of Enbridge’s decision to ration capacity on Lines 4 and 67 that transport oil from Alberta to the United States due to power outages in December. Western Canada Select declined by $4 to a $41-a-barrel discount to U.S. benchmark West Texas Intermediate oil at 1:45 p.m. EST, close to the record discount of $42.50 touched on December 14.

Here I comment on some recent developments affecting the prices of WTI, Brent, and gasoline.

CALGARY • One of the central planks of Alberta’s climate change strategy was cut in half Monday, as the province abandoned plans to give Swan Hills Synfuels LP $285-million to build a synthetic gas plant in the oil hub northwest of Edmonton. Calgary-based Swan Hills was one of four companies earmarked for funding when Alberta announced a $2-billion commitment to accelerate carbon capture and storage, or CCS, projects in 2008.

CALGARY — TransCanada Corp.’s bid to funnel Alberta crude oil east to Quebec refineries and potentially to Canada’s busiest oil port opens the door to new markets for oil sands producers beyond those promised by the long-delayed Keystone XL project.