There are four days left to submit a public comment to the State Department on the Keystone XL pipeline. As we’ve reported time and time again here on DeSmogBlog, the proposed Keystone XL tar sands pipeline would not improve America’s energy security as proponents of the pipeline insist. Nor would completion of the pipeline reduce gas prices here in America, another common claim.
Over a year ago, when the State Department was turning down TransCanada’s first bid, we took a look at why and how Keystone XL wouldn’t reduce gas prices here in the U.S.
This week, Public Citizen released a report that piles on a whole lot more evidence to support this fact. In fact, it makes a rock solid economic case that construction of the pipeline would almost certainly result in an increase in gas prices in the American Midwest. An increase.
For the report, titled “America Can’t Afford the Keystone Pipeline” (PDF download here), Public Citizen analyzed an abundance of data and found that average U.S. gas prices over the past year would have been as much as 3.5-percent lower had there not been any exports of oil. Because Keystone XL would primarily be an export pipeline (as we’ve reported again and again, and as Canadian Energy Minister Ken Hughes has recently admitted), all evidence points to the fact that construction of the pipeline would actually increase gas prices.
Here’s a quick rundown of the report’s main takeaways.