Keystone Pipeline Was Meant To Relieve North America's Oil Glut

Tweet

Due to reduced consumer demand and more fuel efficient cars in the market, it seems like we've now reached the point where Americans aren't filling up our tanks fast enough to support the greed of Big Oil.

Several articles have been floating around the Web that show the Keystone pipeline was meant to act as an oversupply relief valve by shuttling existing domestic oil oversupplies out of Canada and the Midwest, thus boosting prices. In hearings last May and December, TransCanada officials admitted to US legislators that the pipeline will indeed increase the price paid for Canadian oil in the Midwest, but still made a case that resulting tighter oil supplies feeding local demand would eventually bring prices down.

Oil execs even said they'd be willing to pay higher pipeline tariff costs for using the Keystone XL pipeline - just to bring the price of oil down. Ohhh, bless these generous and kind-hearted souls.

CS Monitor Excerpt:
“Prices at the pump will drop when America’s largest refining region (the Gulf Coast) becomes less dependent on the world’s highest priced crude (OPEC),” he wrote. “Foreign importers will have to cut their prices if they want to compete with the cheaper Canadian crude.... We would argue the overall US price per barrel will drop as refiners pay less for foreign and domestic oil competing with a higher volume of cheap Canadian oil.”

Ahhh, "if" they want to compete with the cheaper Canadian crude. Who said they want to compete?

So, why doesn't our current "oversupply" of "cheap" Canadian crude mean America is less dependent on OPEC oil and equate to lower prices now? Why do we have to get rid of our oversupply to bring our prices down? Why are we participating in the global oil market (OPEC, etc.) if the only thing it does best is boost crude oil prices?

Smart planet Excerpt:
... the United States has become a net exporter of fuel for the first time in almost two decades according to new data.

According to the U.S. Department of Energy, America — the world’s largest consumer of oil — exported 54,000 barrels more of petroleum products each day in February than it purchased on the global market.

Drill, baby, drill. Because China needs oil?

Over a year ago, I made what I call an easy prediction that Big Oil is fully prepared to take gasoline to $5 - $7 a gallon if Obama's economy starts rolling. There are no valid market reasons for the prices of oil and gasoline to be where they are. Expect record profits ...again.

Additional:

Blog Critics Keystone XL Pipeline Lies and Higher Midwest Gas Prices