The Mid-Continental Divide

A recent pipeline spill into Montana’s Yellowstone River has added fuel to the fire surrounding the TransCanada Keystone pipeline expansion. Opponents to the project have been vocal on both sides of the American-Canadian border for various reasons, environmental concerns chief among them. Record high crude oil inventories at Cushing, Oklahoma and slack demand from American consumers, however, have called into question the real need for the pipeline expansion and the underlying motives of those angling for its completion, especially on the American side. True, oil prices are still relatively high, but not from lack of supply. American markets are awash in expensive crude oil, but adding more to the trough will not likely mitigate the price pressure anytime soon. Download here