Keystone Pipeline Goes up in Flames.

[arkirk]

Thankfully it was caught before it had a chance to either spring a leak or go up in flames. The leave it in the ground people are serious about no more increases in oil consumption or export which also would have been increased consumption.

 

[Derec]

Increase to what, you think? With US fracked oil coming in in the low fifties on average, Canadian oil production increasing due to projects already in progress, all other oil producing nations fighting to maintain oil revenue, and Saudi Arabia undercutting everyone, barring any world crisis, how do we get much past sixty dollar oil in the foreseeable future?

Oh, I see at least 70 (more than 50% more than today) by then, much more if there is a crisis (and with Russians in Syria there just might be one).
First of all, you have the regular cyclical behavior of oversupply/low prices leading to canceling/postponement of projects which then leads to undersupply/high prices.
Second, you have low prices spurring demand. In the US people are already choosing to buy more trucks and SUVs and fewer hybrids.
Lastly, how long can KSA afford to undercut everybody? How long can the rest of the OPEC abide low prices that ruin their budgets?
We've had a year of relatively low oil prices. There is no reason to assume they can continue for another year.