Posted by Ron Daems, President
Yesterday's news could result in more Oil Sands, carbonates projects. The State Department's EIS concludes that the proposed Keystone XL Pipeline would have minimal impact on the environment over the long term with no appreciable increase in carbon emissions.
The State Department's EIS findings represent a significant step in moving the Keystone XL Pipeline project forward. The starting point of the project pipeline would put the Peace River region, including Strata with its 3.4 billion barrel resource, in working proximity to the Keystone XL Pipeline. Today's report further enhances our belief that Strata is well-positioned to capture the upside of commercial carbonate-hosted bitumen production.
Combined with the recent accumulation of sizeable positions in Alberta's leading bitumen producers by several high profile investors, including Warren Buffett's $524 million stake in Suncor Energy, the leading bitumen operator in the province, the positive momentum behind the oil sector continues to be on an exciting upswing. The Keystone XL Pipeline EIS findings should be great news for the more than $60 billion in proposed and current oil sands projects already underway today and the more than $207 billion in additional investment anticipated over the next 10 years. A positive decision on the Keystone XL Pipeline will mean better economics for bitumen producers, and therefore we should see more projects as a result.
The proposed Keystone XL Pipeline would give Alberta's bitumen producers access to a pipeline stretching from Canada to the U.S. Gulf Coast which would have the capacity to transport more than 800,000 barrels of crude per day, leading to thousands of jobs and reducing U.S. reliance on oil imports from less stable regions. Today's EIS report will set the stage for a 90 day review period for the Obama administration to make a final ruling on the pipeline project.
I'll be in touch with you as more news comes out. In the meantime, if you haven't already done so, remember to check out this exceptional opportunity we've made available to qualified investors at http://www.strataoil.com/include_me.php.