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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.

The report finds that:

   . 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.

The report, produced by Research Director Emeritus Judy Dugan and independent energy analyst Tim Hamilton, utilized industry data, public records and company documents.  Access the report, charts and graphics here:

“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.”

Consumer Watchdog video

The conclusion of the report is: “U.S. consumers should be wary of the Keystone XL pipeline--not just for substantial environmental and safety reasons, but because it threatens their wallets. Given the fleeting benefits of construction jobs, the unprovability of long-term benefits and the negative effect of higher gasoline costs on consumers, Keystone XL is no economic boon to the United States. U.S. consumers and the overall economy would bear the substantial risks of the pipeline without measurable permanent benefit.”

Originally posted to beach babe in fl on Tue Jul 16, 2013 at 02:14 PM PDT.

Also republished by Climate Change SOS and Daily Kos.

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Comment Preferences

  •  That's why they want to build the pipeline (6+ / 0-)

    so they can sell it on the world market. Brent sells at a higher price than WTI (New York). Sometimes as much as $10 a barrel higher. Also, having the pipeline means they can expand their tar sands production. The higher the production, the wider area that gets ecologically ruined.

    Keeping production at a constant rate -- a rate that is constrained by the market they have now, would mean the area of environmental destruction would be contained.

    If they produce as much as they can, as fast as they can, then it will run out quicker and then where will they be? Resource extraction is such a crazy business. The tendency to take it all quickly rather than going for the long term just isn't smart.

    "Societies strain harder and harder to sustain the decadent opulence of the ruling class, even as it destroys the foundations of productivity and wealth." — Chris Hedges

    by Crider on Tue Jul 16, 2013 at 02:31:40 PM PDT

  •  capitalism in a nutshell (4+ / 0-)
    "U.S. consumers and the overall economy would bear the substantial risks of the pipeline without measurable permanent benefit."
    the profits? those are ours. the real, total costs of doing business that our accountants never put into the books? yeah, we externalize those, so thanks for picking up the tab for that, chumps.

    "i hear you're mad about brubeck ... i like your eyes. i like him too." -donald fagen

    by homo neurotic on Tue Jul 16, 2013 at 02:43:27 PM PDT

  •  Obama will allow the Keystone XL pipeline (3+ / 0-)
    Recommended by:
    marina, antirove, boatsie

    to go through. The feds and oil companies have already invested too much in the Port Arthur up-graders located on the Gulf Coast to stop it now. The oil companies have spent over 10 billion in preparation for refining the Canadian sludge. Don't forget that these same oil companies are involved in digging the shit out the ground in Canada.

    Keystone XL benefits from taxpayer subsidies

    Keystone XL, like all oil industry projects, is enabled by substantial taxpayer subsidies. Three of the refineries that are planning to process the pipeline’s oil have invested in special equipment to handle the extra heavy tar sands oil. According to our conservative estimates, the U.S. taxpayer is subsidizing these investments to the tune of $1.0-1.8 billion. Here’s how it works.

    Tar sands oil is not like most other crude oil. It is a semi-solid bituminous sludge that has to be diluted with much lighter oil in order to be transported by pipeline. Once it arrives at a refinery, the diluent is removed and the bitumen is refined into petroleum products using special equipment. The equipment required includes cokers and hydrocrackers.

    In anticipation of the Keystone XL pipeline, three refineries in Port Arthur, Texas have added this equipment in order to be able to profitably process the bitumen. Their goal is to maximize their production of high value fuels such as gasoline and diesel rather than be left with less valuable fuels such as residual oil (for shipping and industrial burners) and Petroleum Coke, a coal like substance that is burned in aluminum smelters and the like. Heavy oil yields high proportions of these less valuable fuels if you do not have the specific equipment to increase the higher value yield.

  •  This is absolutely crazy bullshit (0+ / 0-)
    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.
    why do people keep posting it??
  •  An Abomination and a Rip Off! (6+ / 0-)

    What more could we ask for?

    "If Wall Street paid a tax on every “game” they run, we would get enough revenue to run the government on." ~ Will Rogers

    by Lefty Coaster on Sat Jul 20, 2013 at 04:03:59 PM PDT

  •  Not sure why this is new information (2+ / 0-)
    Recommended by:
    claude, cocinero

    This was known for quite some time.

    Essentially, the current state is that the existing Keystone pipeline carries oil to Midwestern refineries. As such, there isn't a really streamlined way to get the refined products FROM that point in the Midwest has nice and low gas prices.

    Ever notice how the proposed Keystone pipeline in current conversation is described as "Keystone XL"?

    That refers to the extension of the current pipeline...from the Midwest to the gulf, from which point it will be exported.

    There was a proposal to green light the Keystone XL pipeline as long as the end product remained in the US, and was not exported.

    Anyone want to guess how THAT turned out?

    It's not a war, it's an occupation

    by PRESSmUP on Sat Jul 20, 2013 at 04:29:05 PM PDT

    •  Sure, I know it ... (2+ / 0-)
      Recommended by:
      VL Baker, NoMoreLies

      ... I used an article on this point in Economics in the News on week last term ...

      ... but that does not mean that it is widely understood in the areas that will be paying higher gasoline prices as a result of the pipeline, since the information sources that many people rely on are heavily influenced by paid messaging from Big Oil ...

      ... so if this brings the issue to the attention of people who were previously unaware of it, and they pass the word along to their contact both in real life and social media ...

      ... that would indeed be a good thing.

      Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

      by BruceMcF on Sat Jul 20, 2013 at 05:46:21 PM PDT

      [ Parent ]

  •  A real pot and kettle story, though. (0+ / 0-)

    While we're calling Canadians dirty for wanting to exploit the tar sands, the reason why Keystone will increase some American gas prices is that we are the largest burner of that tar sands oil.

    LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

    by dinotrac on Sat Jul 20, 2013 at 04:36:52 PM PDT

  •  what fucking "energy security"? (3+ / 0-)
    Recommended by:
    BruceMcF, cocinero, NoMoreLies

    It "our" oil until it gets pulled out of the ground.  Then it becomes a capitalist's/corporation's  "personal" property to be sold to the highest bidder in pursuit of profit for shareholders.

    Why people keep repeating this vicious canard about  "our" "energy security" when in fact this is all about corporate profits and fuck Americans.

    We have been selling off our heritage so Paris fucking Hilton could get a new fucking gown and deluding ourselves that this is somehow to our benefit.

    What a cruel joke to even use the term "energy security".

    don't always believe what you think

    by claude on Sat Jul 20, 2013 at 04:46:36 PM PDT

    •  You are making quite a bit of sense. (2+ / 0-)
      Recommended by:
      cocinero, claude

      But with the dynamics of  the situation being decided by our bought and paid for politicians, it doesn't matter how awful the Keystone XL pipeline will be, or how it will add to  how much we pay for gasoline.

      And the pipeline probably will end up costing us the major aquifers that eighteen different states rely on for drinking and irrigation water.

      Offer your heart some Joy every day of your life, and spread it along to others.

      by Truedelphi on Sat Jul 20, 2013 at 05:43:02 PM PDT

      [ Parent ]

    •  Why? Because messaging professionals ... (2+ / 0-)
      Recommended by:
      cocinero, claude

      ... have done their research and "our energy security" works will in focus groups.

      Like so many other things, the fact that there is no direct path from reality to the tested message does not matter ot the messaging professionals ... their job is to get across the message that Big Oil is paying them to get across.

      Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

      by BruceMcF on Sat Jul 20, 2013 at 05:48:24 PM PDT

      [ Parent ]

  •  tax oil in transit (n/t) (1+ / 0-)
    Recommended by:
    VL Baker

    "Your victory has demonstrated that no person anywhere in the world should not dare to dream of wanting to change the world for a better place." -- Mandela

    by agoldnyc on Sat Jul 20, 2013 at 07:20:55 PM PDT

  •  If the Canadiens love their tar sands shit so much (0+ / 0-)

    let them ship it from their own ports. Wanna send it to Texas? Fine. Stick it on a ship and sail it down to TX. I just don't understand why we HAVE to transport their crap.

    •  It has to do with US Gulf refiners (where most oil (0+ / 0-)

      refineries are).Keystone is a gift of $20 cheaper Canadian dilbit for US oil refiners' bottom line.
      Originally Canadian bitumen was completely processed into light, clean synthetic crude oil(SCO) which didn't clog and overload pipelines but the oil industry prefers to put the goo in rusty oil pipelines and pump it to their rusty oil refineries.

      •  I understand that they want to send this shit to (0+ / 0-)

        Gulf refineries. Again.....stick it on a ship and sail it down there. Or build their own refineries in Canada.

        •  Originally they were supposed to build refineries (0+ / 0-)

          in Alberta, but the bean counters thought this a most
          excellent idea for avoiding those  new refinery costs by using existing underutilized US refineries.
          Dilbit was a gooey, toxic inspiration.

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