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Gas prices: Keystone XL will increase gas prices for AmericansEspecially 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.
TransCanadas 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
Key Facts on Keystone XL | Tar Sands Action
This is to funny.
The price of Canadia crude is in relation to what they can get other crudes for. Once they take into account properties and transportation, they will argue over fractions of cent. And you think they are going to get 20 cents /gallon more ?
I have a bridge to sell you somewhere.
If canada manipulates the market, saudi crude will come rushing in. Or domestic crudes will take over.
That anyone would post this drivel is beyond pale.
How did you mange the quote reversal?