Gillisr, I am not sure what is going to be flowing through the Keystone pipeline. The product that does flow through the pipeline will get the most price appreciation but all oil from that general region will benefit. There will be that much less competition for other avenues of transportation, be it rail, barge or pipeline. The Canadian government seems to get the message that the Alberta oil needs to be able to get to a port somehow. We need the Keystone, the Northern Gateway and a doubling of the Trans Mountain pipeline and there will still be bottlenecks. There is also a natural gas pipeline going to Eastern Canada that they are trying to convert to an oil pipeline. If we get all this built ( or at least approved and construction started) we should be getting around world pricing.
I think that the best way to look at Syncrude pricing is that every time they figure out another way to get more oil to world markets the price gap will narrow somewhat.