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Exxon Mobil Corporation Message Board

  • bluecheese4u bluecheese4u Jul 16, 2013 9:00 AM Flag

    Report: Keystone XL Pipeline Will Raise Gas Prices, Hurt Economy

    Report: Keystone XL Pipeline Will Raise Gas Prices, Hurt Economy

    RP Siegel | July 16th, 2013

    Keystone gameoverConsumer Watchdog released a groundbreaking report today that asks and answers the following question: What economic effect will the Keystone XL oil pipeline have on U.S. drivers and the U.S. economy as a whole?

    The 19-page report compiles information from various sources including industry data, public records and company documents related to the issue. But the bottom line is this: the prime motivation behind the pipeline is to drive up the price of Canadian tar sands oil. The direct impact of this will be a significant increase in the pump price of gasoline for U.S. drivers, particularly those in the Midwest.

    According to the report, prices could rise anywhere from 20 to 40 cents per gallon as a direct result of the fact that various overseas markets will gladly pay more than what Midwesterners are currently paying for that oil. The authors expect the price of the crude would rise anywhere from $20 to $30 for a 42-gallon barrel and that it would be up to refiners to decide how much of that increase to pass along to consumers.

    Overall, the anticipated impact would be a $3 to 4 billion annual hit to the US economy.

    The Midwestern U.S. is the main market that this tar sands oil presently reaches, with a small amount going to the West Coast. Given the fact that the government of British Columbia recently refused to allow a similar pipeline through its territory to ports on the Pacific, it will likely remain that way unless Keystone is approved. This limited market access has led to a discount for the tar sands oil that would certainly disappear should its producers achieve the access to worldwide markets they desire.

    One of the major arguments used in the justification of the pipeline’s controversial 1,179 mile fourth phase, (the other three are already completed or under construction), which would connect Hardisty, Alberta with Steele City, Nebraska, i

 
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