Transocean Challenged by Falling Oil Prices indicated a $2.7 Billion write down of assets, ocean oil rig value, in this environment of plenty killing the investment prospect of the expensive hard to find and or extract stuff. Not a good omen for the tar sands of Canada. On pure economics, without externalities such as costs of despoiling land and air, the high percentage of energy required to mine, heat, process and finally transport this fuel probably puts tar underwater in sub $75 a barrel oil market.* This back of the envelope observation puts the Keystone Pipeline in jeopardy for economic reasons rather than political. Politically it should pass because the transport of oil in pipelines is safer than in trains, but from an investor's perspective its a loser proposition based on an engine that costs more to run than what it produces and once Canada wakes up to the fact millions of acres are spoiled over a bad business proposition, it might be the pipeline to nowhere.
* The Cost of Production and Energy Returns of Oil Sands article indicates a WTI (West Texas Intermediate - Light Sweet Crude which is easiest to refine) oil price of $90-100 per barrel requirement.
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