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Bloomberg: "Keystone Oil Pipeline Seen Raising Gas Prices in Midwest"

1 min. read

An independent study by Cornell University researchers has already shown the claims made by Keystone XL tar sands pipeline backers - more jobs, lower oil prices, etc. - to be largely, if not completely, unfounded.  Now, Bloomberg reports on yet another downside of this pipeline that you almost certainly won't hear from the oil lobby or the politicians it has on its payroll.

TransCanada Corp. (TRP)’s Keystone XL oil pipeline, a project backers including Republican Presidential candidate Rick Santorum say will create cheaper U.S. gasoline, instead risks raising prices as much as 20 cents a gallon in the Midwest, Great Plains and Rocky Mountains.

[...]

The Canadian plan was to use their market power to raise prices in the United States (UNG) and get more money from consumers,” Philip Verleger, founder of Colorado-based energy consulting firm PK Verleger LLC, said in an interview. Prices may gain 10 to 20 cents in central states, he said.

Presumably, Verleger is citing the Cornell study, which found that Keystone not only "may actually destroy more jobs than it generates," but also may result in "consumers in the Midwest paying 10 to 20 cents more per gallon of gasoline and diesel fuel."  No matter how you look at it, Keystone's simply a bad deal.