Ol' Keystone XL Will Raise Gas Prices After All: New Report
The NRDC released a new report today, and it found that the ol' Keystone XL will raise, not lower, gas prices. I know what you're thinking, and no, the report was not actually couched in such folksy vernacular. But more environmental impact reports should be.
Moving on, here are the goods from NRDC:
Keystone XL will take oil currently refined in the Midwest and Rockies and send it to the Gulf Coast where it can be sold on the international market. Oil supplies dedicated to the United States will decline while the Keystone XL pipeline provides the international market with access to that Canadian crude previously meant for the U.S. market. This will have a powerful impact on oil prices in the Midwest and Rockies—increasing the price of Canadian crude by $20 to $30 a barrel in the 2012 U.S. market, while doing nothing to decrease world oil prices.There was some previous evidence that the Keystone would boost prices in middle America, and the analysis here seems to confirm earlier suspicions.
Since it's only a regional impact, this probably isn't going to be a game-changer in the interminable Keystone saga—but it makes for one hell of a talking point for opponents.