Many industry analysts and executives have said that without Keystone XL,
limited pipeline capacity would impede expanded tar sands production.
Crude oil is the fastest growing category of hazardous shipments on North American rails because of
limited pipeline capacity for booming Bakken production.
That's especially true for western Canadian producers, who wait behind North Dakota producers for
limited pipeline capacity headed south.
Trump's action, which comes in his fourth full day in office, would be a boon for oil producers concerned about
limited pipeline capacity bringing oil to market.
Not exact matches
That would account for shipping costs and the lower quality of WCS versus WTI, as crude - by - rail shipments increase and
capacity returns to normal on the Keystone
pipeline across the U.S., which has faced pressure
limits since it leaked in November in South Dakota.
Supply is also
limited by physical facilities and structures, such as
pipeline capacity.
Despite the expectation that the tide is finally turning for Canada's oil producers, significant challenges remain, with constrained
pipeline capacity and
limited capability to expand export markets the biggest of them all.
China plans to
limit its annual coal consumption to 4.2 billion tons at the end of the decade, but its current production
capacity has already surpassed 4 billion tons, with an additional 1 billion tons in the
pipeline.
But the conclusion of an international agreement to
limit Iran's nuclear arms
capacity, which would lift the international sanctions that have restricted Iranian energy exports, would give new momentum to the planned construction of an ultra-deepwater natural - gas
pipeline across the Arabian Sea, from Iran to India's west coast.
The export
capacity is the
limiting factor to production — which the industry body figures show could utilise all mooted
pipeline routes and increased rail
capacity.