Key Facts on Keystone XL

Energy Security: Tar Sand will not Reduce Dependence on Foreign Oil
Keystone XL will not lessen U.S. dependence on foreign oil, but transport Canadian oil to American refineries for export to overseas markets.

• Keystone XL is an export pipeline. According to presentations to investors, Gulf Coast refiners plan to refine the cheap Canadian crude supplied by the pipeline into diesel and other products for export to Europe and Latin America. Proceeds from these exports are earned tax-free. Much of the fuel refined from the pipeline’s heavy crude oil will never reach U.S. drivers’ tanks.
• Reducing demand for oil is the best way to improve our energy security. U.S. demand for oil has been declining since 2007.  New fuel-efficiency standards mean that this trend will continue once the economy gets back on track. In fact, the Energy Deptartment report on KeystoneXL found that decreasing demand through fuel efficiency is the only way to reduce mid-east oil imports with or without the pipeline.

More info:

• “Exporting Energy Security: Keystone XL Exposed”, Oil Change International

Gas prices: Keystone XL will increase gas prices for Americans—Especially Farmers

• By draining Midwestern refineries of cheap Canadian crude into export-oriented refineries in the Gulf Coast, Keystone XL will increase the cost of gas for Americans.
• TransCanada’s 2008 Permit Application states “Existing markets for Canadian heavy crude, principally PADD II [U.S. Midwest], are currently oversupplied, resulting in price discounting for Canadian heavy crude oil. Access to the USGC [U.S. Gulf Coast] via the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in [the Midwest] by removing this oversupply. This is expected to increase the price of heavy crude to the equivalent cost of imported crude. The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013 of US $2 billion to US $3.9 billion.”
• Independent analysis of these figures found this would increase per-gallon prices by 20 cents/gallon in the Midwest.
• According to an independent analysis U.S. farmers, who spent $12.4 billion on fuel in 2009 could see expenses rise to $15 billion or higher in 2012 or 2013 if the pipeline goes through. At least $500 million of the added expense would come from the Canadian market manipulation.

More information:

• “Tar Sands Oil Means High Gas Prices” Corporate Ethics International
• “Pipeline Profiteering” National Wildlife Federation

Read the whole story at Tar Sands Action