New Research on Keystone XL Pipeline and Tar Sands Oil: The NRDC and Oil Change Int’l have just put out research entitled Keystone XL Pipeline: Undermining U.S. Energy Security and Sending Tar Sands Overseas showing how Keystone’s oil would have been exported and how the pipeline would have actually increased the price of oil in the Midwest. With documented evidencefacts that will help tell the truth and debunk the petroleum industry’s propaganda about the Keystone XL Tar Sands Pipeline. The Report, summarized in a two page Energy Facts, shows:
…how Keystone XL will help maximize Big Oil’s profits while doing nothing to enhance U.S. energy security. It explains that:
- there is currently a glut of pipeline capacity from Canada to the U.S. with around 50% currently unused;
- Canadian oil production is not forecast to fill existing pipeline capacity until after 2025;
- this means that Keystone XL would simply be diverting oil to the Gulf Coast that would have supplied the Mid West;
- this will likely raise the price of Canadian oil in the Mid West as Canadian oil moves from surplus to shortage;
- Gulf Coast refiners represent a comparatively limitless market because they are able to export products to anywhere in the world;
- With U.S. gasoline demand in terminal decline, Gulf Coast refiners are maximizing diesel output to serve the export market;
- With 25% of refinery output and growing going to export, the Gulf Coast is becoming an international refining center in which U.S. domestic demand is becoming increasingly irrelevant.
This may help those who are looking for some key facts to help explain why the pipeline is not what it is portrayed to be by the Chamber of Commerce and the Petroleum Industry. While it appears that the pipeline may not be built, for now, the tar sands oil will still be able to flow through existing pipelines to refineries on the Gulf Coast for export and use around the world. Work needs to continue to prevent exploitation of the tar sand oil and further devastation to that ecosystem, as well as its continued contribution to reliance on fossil fuels, from this particularly “dirty” one.