A true must-read. Particularly for long-term oil-industry investors.
Hard to fathom in a current times, but who would have believed coal would fall of a cliff and die in no time flat. Oil and pipeline face the same fate - the same cliff awaits...
But over and done and mostly gone by 2025? Who would believe the future will rush into the face of big oil as fast as coal?
Succinct, logical, rather obvious in the end.
From the link:
The Keystone XL will go down as the world’s last great fossil fuels infrastructure project. TransCanada, the pipeline’s operator, charged about $10 per barrel for the transportation services, which means the pipeline extension earned about $5 million per day, or $1.8 billion per year. But after shutting down less than four years into its expected 40 year operational life, it never paid back its costs.
The Keystone XL closed thanks to a confluence of technologies that came together faster than anyone in the oil and gas industry had ever seen. It’s hard to blame them — the transformation of the transportation sector over the last several years has been the biggest, fastest change in the history of human civilization, causing the bankruptcy of blue chip companies like Exxon Mobil and General Motors, and directly impacting over $10 trillion in economic output.
And blame for it can be traced to a beguilingly simple, yet fatal problem: the internal combustion engine has too many moving parts.
Edited by diogenes227, 05 August 2017 - 04:21 PM.