By alternatives, are you referring to alternative methods of oil extraction? Or, do you mean all alternatives (fracking, solar, etc.)? Low oil prices are definitely making fracking firms unprofitable, and therefore undesirable investments. However, I'd counter that the demand (and investment) for renewable alternatives is not as affected by low oil prices so much. The demand for renewable alternatives seems to be coming from those who prefer a higher short term cost over a higher long term cost. As well, the demand from renewables is driven by those without access to reliable electrical grids (this applies more to developing nations). In US urban areas, where oil-produced electricity is readily available, it may be more economical to consumers to stay with oil. However, regulation that favors electric utility and oil firms certainly have something to do with that. If you have the time, read this article. While noting the source (Greentech), alternatives are growing increasingly more affordable. With the recent targets set by California state (one of the top ten economies in the world btw), should be seeing an increased demand for innovation in the renewable and green tech sectors. Renewables will see improvements in cost/impact, and that technology will filter into other economies. Of course, this is over the next decade or so-- there is still quite a ways to go.

I get all of that takes time; too much that if won't effect the companies decision to transport the oil. Oil subsidies are another thing that keep oil firms profitable. By removing those, their ability to turn a profit greatly diminishes. Conversely, giving subsidies to renewables will increase their ability to offer lower prices to consumers. That's something that "can" happen in the same time frame as the pipeline project.

I don't mean to say that will should immediately remove all oil subsidies. Doing so will cause the supply to crash (and price to skyrocket) and that lower supply will drastically impact business and individuals worldwide. However, by gradually decreasing oil subsidies (and increasing subsidies in renewables), the economic pains of switching would be more manageable.

This is all ideally, of course. With so much political clout and pressure of oil firms, it seems unlikely it will happen anytime soon. That all said, the oil companies will do all they can to profit from this venture. Even though the Keystone pipeline is the least environmentally damaging oil transportation alternative proposed. The pipeline also will allow the oil company to transport more oil for a lower cost. In turn that supply will