What effect will the coming approval by Obama of the Keystone pipeline have on ERF. My understanding is the Oil ERF has in Alberta has been constrained by limitations in the way it can be brought to market. Will the Pipeline create a better way for ERF to get product out of the tar sands?
Canada is not waiting on Obama. Enbridge and Kinder Morgan both have plans to build new pipelines to the coast of western canada. These will open asian markets to oil from Canada, including from Alberta. Completion is 3-5 years out, which might be a long time for an investor, but it's not very long for an energy company.
ERF has no position in the tar sands. They sold their interest three years ago. Keystone pipeline will remove a bottleneck in distribution of oil out of Bakken shale areas to Cushing, could depress pricing in Cushing as a result but bottleneck of oil out of Cushing is being worked on. Eventually WTI pricing and Brent pricing will equalize, its just a question of when and for what price. My guess is late 2014 for Brent and WTI to equalize and for a rebound n Nat Gas pricing as that's the timeframe for several LNG export facilities to come online. In two years, people will be saying, "I wish I had bought ERF when it was selling for $13/share".