All Canadian pipelines will be working at full capacity until the end of 2015.  The producers and the pipeline companies are now in negotiations for space until 2020.  Some producers are asking for contracts to last into 2022. 

                With Gateway not going to be built until at least 2018, and maybe never, plus the Keystone decision being delayed until year end at the earliest, the demand for pipeline capacity will increase substantially.  The earliest Keystone could be in operation is mid-2016.  The southern portion has already been built and is in operation. 

                Especially throughout Alberta, lots of small pipelines are being built today.  These pipelines will be full for the next 6 years at least.  This should result in higher earnings for the pipelines.  And hopefully more dividend increases. 

                We do not see oil rail tanker cars fulfilling the demand.  Plus, railroads are more expensive than pipelines.  If there is another accident like that a year ago in Quebec the demand to use the rails will collapse. 

                The only negative for the pipelines, and it is a small one, is that America is discovering oil via shale rock.  As a result, sometime over the next year Americas demand for Canadian oil will temporarily decline.  However, over the long term America will need as much of our oil we can pump.  Hopefully Ottawa and Victoria will realize this and expedite the approval of the pipelines.  

                We have been holding pipeline shares for 6 to 9 years.  We can see holding for another five due to potential for rising dividends.  We see foreign demand growing with each passing year.