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Significance

The shale revolution in the United States created an explosion in upstream exploration and production (E&P) activity, as well as unprecedented demand for infrastructure to connect newfound resources with refineries and processing plants. Even a brief pause in shale revenue and drilling could imperil investment in this midstream sector.

Impacts

Keystone XL may be traded by the White House for environmental policy from Congress.

The decline in oil prices will hit the Texan economy, as well as the presidential hopes of former Governor Rick Perry.

Although oil exports may not be permitted, swaps with Mexico will ease oversupply of light crude.

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