Yes I just read! Maybe a momentum changer for this sector.
WASHINGTON — The State Department says Canadian tar sands are likely to be developed, regardless of whether the U.S. approves a plan to pipe oil from western Canada to refineries in Texas.
A draft environmental report acknowledges that development of tar sands in Alberta would create greenhouse gases but makes clear that other methods to transport the oil also pose a risk to the environment.
The State Department was required to conduct a new environmental analysis after the pipeline’s operator, Calgary-based TransCanada, changed the project’s route though Nebraska. The Obama administration blocked the project last year because of concerns that the original route would have jeopardized environmentally sensitive land in the Sand Hills region.
The report does not make a recommendation for or against the project but does not raise major objections.
Well ... Keystone will be built according to the latest Casey article. But he's in doubt that the situation for the Canadian oil companies will improve because Obama get's it's toll by charging a so called "carbon tax". This carbon tax will eat up all the potential gains from a narrowed WTI - WCS spread.
Final relief will only come when Canada builds a pipeline to the west in order to sell their oil to Asia.
After losing the Squestration issue today and looking very bad for saying it was the end of the world I wonder if Obama Administration would want to lose more political capital by rejecting Keystone. I don't think so particularly with the State Department not objecting.