A new study from Consumer Watchdog says that Keystone XL pipeline will raise American gas prices 20 cents to 40 cents in the Midwest with no long-term economic benefit to U.S. economy.
Consumer Watchdog, a nationally recognized nonprofit consumer group, has reviewed corporate, industry and government data and found that pipeline developers and the Canadian government intend to use the controversial Keystone XL pipeline to raise the price of Canadian tar sands oil on the global market by shipping oil directly to the Gulf. This would raise U.S. gas prices in the Midwest by up to 40 cents a gallon.
“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.”
Key findings from the report:
- Drivers, especially in the Midwest, would pay 20 cents to 40 cents more at the pump if the disputed pipeline were built, as the current discount of up to $30 a barrel for Canadian oil disappears.
- The true goal of multinational oil companies and Canadian politicians backing the pipeline is to reach export outlets outside the U.S. for tar sands oil and refined fuels, which would drive up the oil’s price.
- With U.S. oil production rising fast, any “energy security” benefit for the U.S. would vanish as American oil output exceeds that of Saudi Arabia in about 2020, according to the International Energy Agency.