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4 Energy Stocks Hoping for a Big Keystone XL Boost

Project approval looks increasingly likely, and when the green light comes, these stocks could pop

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Suncor Energy (SU)


Canadian heavy oil and tar sands producers have seen their profits diminish as the lack of sufficient infrastructure has curtailed demand for Western Canadian Select (WCS) crude. The fracking boom creating oodles of lighter, easier-to-refine WTI crude oil isn’t helping either.

The Keystone XL will eliminate many logistics issues, and producers in the oil sands should immediately see a bump in price for their production when it starts flowing.

The biggest winner could be Suncor Energy (SU). The company first pioneered drilling in the oil sands back in the 1960s and has continued to amass a large acreage position in Alberta. Hindering that position has been the huge disconnect between WCS and WTI crude oil, and profits at SU continue to be muted. However, if the Keystone is approved, Suncor should be able to boost profits and see its shares improve.

Article printed from InvestorPlace Media,

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