Western Canadian Oil A Shaky Investment -- BloombergBusinesweek

For the archives.

It's an old story.

BloombergBusinessweek is reporting:

The real value of the Keystone XL is that it would deliver oil-sands crude down to the Gulf Coast, where it could compete with Mexican crude priced against the Maya benchmark. Heavy Mexican oil enjoys a $20 premium over its Canadian rival and is trading at about $87 a barrel. Even if the Keystone XL gets approved, just getting Canada’s crude down to the Gulf is barely enough to make it worthwhile. Mark Lewis, one of the new Keystone report’s co-authors, estimates that between the transport costs and the extra lubricants needed to coax the oil through thousands of miles of pipeline, it would cost about $18 a barrel to get that tar-sand crude from Western Canada down to the Gulf Coast on the Keystone XL.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or think you may have read here.

Remember two facts:

• the earth is not making any new oil (for all practical purposes, in human-time-span)
• presidents come and go

Smart investors will remember those two facts.