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Opponents to Keystone pipeline say it won't lower fuel prices

Apr 28 2014, 12:46pm CDT | by , in News | Latest Business News

Opponents to Keystone pipeline say it won't lower fuel prices
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Fuel prices could go up in the mid-west say pipeline detractors

Oil companies have been working hard to get a new pipeline built that would run across the country. The pipeline is called the Keystone XL and opponents to the project say that it won't lower fuel prices in the US. In fact, some of these people against the pipeline say that it might raise fuel prices reports Forbes.

Some that oppose the pipeline say that without the pipeline fuel prices in the mid-West will be lower.

"In Keystone’s weirdonomics, the pipeline would actually increase prices of gasoline for much of the country, according to at least three studies that have looked into it. Keystone would divert crude from Midwest refineries to Gulf Coast refineries, where it would then be shipped to more expensive markets. Bypassing heartland refineries could drive up prices at home."

"For people living in the Midwest, Great Plains and Rocky Mountains, it could add 20 cents a gallon to the price at the pump."

The crux of his fear is that while crude oil derived from the US can't be exported, fuel made from that crude oil can be exported. That wouldn't make fuel cheaper for people in the US. Currently crude oil drilled in the US trades at a discount compared to oil from worldwide sources because it can’t be exported. Lifting any restrictions on the US derived crude exports would mean that drillers would get the world price and little difference will be seen by consumers.

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