Would Keystone pipeline increase gas prices? Experts disagree

Thursday, July 18, 2013
 | 
Chris Woodward (OneNewsNow.com)

A new report claims the Keystone XL pipeline will raise gas prices and hurt the economy, while an energy expert disputes that claim.

The report from public advocacy group Consumer Watchdog says drivers, especially in the Midwest, would pay 20 to 40 cents more at the pump if the pipeline were built, as the current discount of up to $30 a barrel for Canadian oil disappears.

Meanwhile, the report says the true goal of multinational oil companies and Canadian politicians backing the pipeline is to reach export outlets outside the U.S. for tar sands oil and refined fuels, which would drive up the oil's price.

Kish, Dan (IER)Dan Kish of the Institute for Energy Research disputes such claims.

"This allegation is nothing new, that somehow bringing more oil into the United States from Canada is going to drive up the cost of oil,” he tells OneNewsNow.

 "I don't know about you but there are a few things I remember from economics, and that is as you increase supply, price goes down."

 As for claims that Americans need the pipeline for energy independence, rather than rely on Middle East oil, Consumer Watchdog points out that U.S. domestic production has been on the rise and is on track to exceed that of Saudi Arabia by 2020.

Kish believes we may reach that point by 2017, but he says America will still be importing oil, because the country uses a lot of oil. 

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