Kent Hoover – Washington Bureau Chief – January 6, 2015
Cheap crude oil prices are a temporary phenomenon, and the Keystone XL pipeline will be approved this year.
Those are the two big takeaways from the American Petroleum Institute’s “State of American Energy” event in Washington, D.C., Tuesday.
They’re pretty optimistic predictions given what was happening elsewhere Tuesday.
Crude oil prices continued to plummet, with West Texas Intermediate at one point falling to $47.55, its lowest level in more than five years.
Plus, the White House said PresidentBarack Obama would veto legislation approving the Keystone XL pipeline, which would transport tar sands oil from Canada to Gulf Coast refineries. Both the House and the Senate are expected to pass the bill this month.
But API President and CEO Jack Gerard remains bullish about the prospects for American’s oil and natural gas industries.
Since last year’s “State of American Energy” address, crude oil prices have fallen by more than 50 percent. That’s because, for now, the supply of oil exceeds global demand. But Gerard expects demand to grow as the U.S. economic recovery gains steam, and Europe and China get out of their funks.