Oil markets finally got some…
Oil markets have so far…
A new analysis by the Natural Resources Defence Council (NRDC) has found evidence that the Keystone XL pipeline would actually increase the gasoline prices paid by US customers as opposed to reduce the prices as TransCanada, the company looking to build the pipeline, would have us believe.
Anthony Swift, an attorney for the NRDC, said that, “the pipeline’s proponents say it’s the solution to high gas prices. The truth is exactly the opposite —the pipeline would raise gas prices. This is one of the most misunderstood issues surrounding this misguided Canadian project.”
The Keystone XL pipe expects to transport 830,000 barrels from Canada’s oil sands in Alberta, through the heart of the US, to refineries in Texas. The flow of the dirty crude from Canada will divert oil from Midwestern refineries (which produce more gasoline than other regions in the US), increasing the price that the refineries must pay for crude oil, a fact that TransCanada have admitted. As a result US gasoline prices would soar.
Lorne Stockman, research director at Oil Change International, said that “the oil industry is increasingly looking to lucrative international diesel markets to increase its profits. Keystone XL sends tar sands crude to refineries that are maximizing diesel production for export – and that means less gasoline for U.S. consumers.”
Based on an analysis performed by TransCanada themselves, building Keystone XL would add $20 to $40 to the cost of a barrel of Canadian oil.
Tzeporah Berman, co-Founder of Forest Ethics, said that the “tar sands producers mislead the public into thinking these pipelines benefit consumers while instead these pipelines are just massive profit machines for the big oil companies.”
Anthony Swift said that “America does not need the Keystone XL pipeline–and does not need all the attendant harms that it would do to our air, our lands, our waters and our climate. The solutions to our energy needs lie in reducing our demand for oil, increasing fuel efficiency standards, and eliminating subsidies for the oil and gas industry.”
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com