These are good thoughts, and I agree that at a quick glance LNG is likely an excellent candidate for continued gains considering the new highs and the underlying strength in economic indicators.
My primary reason in understanding the state of the oil economy is because I see that it can act as an excellent economic indicator. Knowing that oil will trade at the lower side of the price spectrum is an excellent insight into whether one should be investing in high risk or looking elsewhere.
I am not sure if the Keystone XL pipeline will be built yet, as it seems to be receiving high opposition. It is still too early to tell, for me. Nevertheless, if it is built, I do expect WTI to trade at a lower price, simply because the Canadian oil will be more accessible to WTI markets.
The real question is how the equilibrium between the WTI and Brent markets will be altered. Will it be altered at all? It seems unlikely at first glance. From what I understand about oil, Brent is more costly to refine due to impurities. Adding a Canadian pipeline does nothing to change that. If anything, it will weaken demand for refined Brent crude (minutely).
A very interesting chart would be to see the refined supply available to various areas. One could then possibly predict whether 700,000 of additional barrels of oil in southern refineries will really make a difference. From what I read about Canada, they expect to send the oil to our refineries, and then expect some of it to be shipped back through other means.
I can see that oil prices and refined oil (gasoline) prices will drop nearest to those refineries, as that seems to be common sense. I suppose, in a way, the cost of gasoline will be lowered in Canada as well, but to a lesser degree.
This is all good news for our economy, if it happens, especially the economies near the refineries.
