Market Currents: U.S. dependency on Middle East crude is rising

[Hondo69]

An overlooked benefit of the Keystone pipeline - oil shipped to the U.S. is oil not shipped to someone else (China).

The Chinese economy has cooled down a notch due to decrease in demand for products worldwide.  But it won't stay that way forever and most likely return to the robust economy they enjoyed a few short years ago.  And the Chinese operate on a 100 year plan (or longer) unlike the 20 minute no-plan here in the U.S.

Which is why the Chinese have been going around the world gobbling up assets such as long term contracts for oil and rare earth metals.  The Obama administration deserves an F on their energy report card in this regard.  Not only did they stand by and do nothing as the Chinese outmaneuvered U.S. companies for these assets but in many cases seemed to be aiding and abetting the Chinese.  U.S. companies have been screaming bloody murder for years. 

If the Trump administration comes up with a new and improved set of energy policies that would be a step in the right direction, but we're way behind the eight ball already.  For a football analogy, it would like the U.S. starting at the goal line while the Chinese are already at the 50 yard line.

[Smokin Joe]

Why do you think Warren Buffett was lobbying Obummer so strongly to squelch the pipeline?

That BRK.A $5B stake in rail might have something to do with it.

Yep. Delays in the Dakota Access Pipeline have ensured that rail remains the major means of shipping oil out of North Dakota's Bakken and Three Forks formations.
DAPL could carry roughly half of the current production from the region (still America's Second highest producer) at a savings to shippers of roughly 2.5 million/day.

[Smokin Joe]

An overlooked benefit of the Keystone pipeline - oil shipped to the U.S. is oil not shipped to someone else (China).

The Chinese economy has cooled down a notch due to decrease in demand for products worldwide.  But it won't stay that way forever and most likely return to the robust economy they enjoyed a few short years ago.  And the Chinese operate on a 100 year plan (or longer) unlike the 20 minute no-plan here in the U.S.

Which is why the Chinese have been going around the world gobbling up assets such as long term contracts for oil and rare earth metals.  The Obama administration deserves an F on their energy report card in this regard.  Not only did they stand by and do nothing as the Chinese outmaneuvered U.S. companies for these assets but in many cases seemed to be aiding and abetting the Chinese.  U.S. companies have been screaming bloody murder for years. 

If the Trump administration comes up with a new and improved set of energy policies that would be a step in the right direction, but we're way behind the eight ball already.  For a football analogy, it would like the U.S. starting at the goal line while the Chinese are already at the 50 yard line.

Those assets purchased were often done so in US dollars, which cuts the Chinese holdings of our dollar. Not just rare earths, but base metals and precious metals as well (natural resources rights in general).