This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Keystone XL Is Dead, but That May Not Even Matter

NEW YORK (TheStreet) -- Approval for the Keystone pipeline was pushed down the road again Tuesday, but this time it took an important Senate effort for incentives on energy efficiencies with it.

A bill that's been roaming around the floor of the Senate since 2011, promising incentives for efficient "smart grid" electric systems, got scuttled as partisan bickering over Keystone wouldn't allow the bill to get a vote. Democrats blamed Republicans and the Republicans blamed Democratic leadership, but the bottom line is that a bill with bi-partisan support, that would have helped everyone, failed to get passed due to the political football that Keystone has become. There hasn't been an energy bill that's been voted through by Congress since 2007.

And it's starting to look like the Canadians are running out of patience. At a conference of Canadian oil producers, delegates expressed dismay at the delays of getting a final dispensation for Keystone.

TransCanada (TRP - Get Report), the majority stakeholder in the Keystone pipeline, has proposed a different pipe route for moving increasing quantities of oil sands production from the Athabasca. Their idea is an $11 billion pipeline from Western Canada moving east to New Brunswick called the "Energy East" pipeline. A fully Canadian pipe accessing Canadian ports obviously won't need U.S. approval to construct. It seems clear that TransCanada is making new plans to keep up with ramping oil sands production, regardless of whether Keystone is ultimately approved.

What also seems clear is that the lack of approval of Keystone won't slow down Canadian production of oil sands assets much. Of the Canadian oil stocks in the Athabasca, I particularly like undervalued Cenovus (CVE - Get Report).

I talk more about Keystone with Jim Cramer in the video above.

>>Read more: Dicker's Gas Price Outlook: Good for Refiners, Bad for Drivers

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Dicker held no positions in stocks mentioned, but positions can change at any time.

Dan Dicker has been a floor trader at the New York Mercantile Exchange with more than 25 years of oil trading experience. He is a licensed commodities trade adviser.

Dan is currently President of MercBloc LLC, a wealth management firm and is the author of "Oil's Endless Bid," published in March of 2011 by John Wiley and Sons.

Dan Dicker has appeared as an energy analyst since 2002 with all the major financial news networks. He has lent his expertise in hundreds of live radio and television broadcasts on CNBC, Bloomberg US and UK and CNNfn.

Dan obtained a bachelor of arts degree from the State University of New York at Stony Brook in 1982.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CVE $16.42 0.00%
TRP $43.01 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs