Keystone XL will raise American gas prices, according to new report

Following a Nebraska court's ruling that the Keystone XL pipeline can be built, Consumer Watchdog stated that the issue should be debatable for the Obama administration, as the building of the pipeline will raise American gasoline prices, which are at historic lows. "The Keystone XL pipeline extension will take cheap crude oil from the Midwest and move it through the Gulf to Asia," said Jamie Court, President of Consumer Watchdog. "Our report on the pipeline extension shows that the goal of the pipeline backers is cheap oil for Asia, which means more expensive gasoline for Americans. Approval of the pipeline would upset historically low gasoline prices in the Midwest."

The report, ‘Keystone XL: Oil Industry Cash Machine,’ found the Keystone XL pipeline will hike prices at the pump by US$0.20 – 0.40 per gallon in the Midwest, with no long-term economic benefit to the US economy. The report produced by Research Director Emeritus Judy Dugan and independent energy analyst Tim Hamilton, utilised industry data, public records and company documents. "Keystone XL is not an economic benefit to Americans, who will see higher gas prices and bear all the risks of the pipeline," said report author Judy Dugan. "The pipeline is being built through America, but not for Americans."

The report also found that Canadian crude oil currently being sent to the Midwest from Canada would be easily diverted to Keystone XL to satisfy overseas demand. Much of the Canadian oil would go directly to Gulf Coast refineries owned by the same multinational companies investing in tar sands, said the report. These companies include Exxon Mobil, Chevron, Koch Industries, Marathon Oil and Shell Oil. Gulf refineries would refine the tar sands crude oil into diesel oil, which is in high overseas demand, and gasoline for export.

While the pipeline developers have insisted that the pipeline would create tens of thousands of jobs, the report notes that they have offered no proof of substantial jobs created beyond construction and maintenance of the pipeline itself.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/project-news/12012015/keystone-xl-will-raise-american-gas-prices-according-to-new-report-32/