“Millions of Americans will spend 10 to 20 cents more per gallon for gasoline and diesel fuel as tribute to our ‘friendly’ neighbors to the north,” the highly respected Dr. Verleger wrote. “The Keystone XL pipeline will move production from Canadian oil sands to a deepwater port from where it can be exported.”
But that is not merely Verleger’s opinion. It’s based on findings of the economic consultants hired by TransCanada – contained in their analyses of the pipeline’s impact on Canadian oil producers and in official testimony before Canada's National Energy Board.
If we were to bar the sale of Keystone refined crude overseas, it might well lower prices, Certainly it has little to do with industry propaganda by way of Congress ferr sherr.
Most compelling arguement is security imo.In an e-mailed statement, TransCanada spokesman Terry Cunha writes that Keystone XL could help cut US reliance on Mideast and Venezuelan imports “by up to 40 percent.” He cites a 2010 US Department of Energy
study that he contends says more Canadian oil would “help reduce US imports of foreign oil from sources outside of North America
Theoretically supply and demand would matter.. Not neccesarily, as the Arab nations raise and lower production whenever it suits them..Also, the type of crude matters.
By draining Midwestern refineries of cheap Canadian crude into export-oriented refineries in the Gulf Coast, Keystone XL will increase the cost of gas for Americans.TransCanada’s 2008 Permit Application states “Existing markets for Canadian heavy crude, principally PADD II [U.S. Midwest], are currently oversupplied, resulting in price discounting for Canadian heavy crude oil. Access to the USGC [U.S. Gulf Coast] via the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in [the Midwest] by removing this oversupply. This is expected to increase the price of heavy crude to the equivalent cost of imported crude. The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013 of US $2 billion to US $3.9 billion.”