Keystone Pipeline Will Raise the Price of Gas, Consumer Watchdog Reports (Video)


The Keystone XL Pipeline will increase the price of gas in the United States between 20 and 40 cents per gallon, according to nonprofit group Consumer Watchdog. The group says the Midwest would see the biggest price increase.

"Keystone XL is not an economic benefit to Americans who will see higher gas prices," said Judy Dugan, an author of the study.

Canadian oil is currently discounted up to $30 a barrel because there is no access to European and Asian markets. If the Keystone Pipeline is built to across the country from Canada to the Gulf coast, tar sands oil from Canada will be able to compete with Mexican Maya oil, which sells at $100 a barrel.

"A vote for Keystone is a vote to raise gas prices on Americans and send the profits to a foreign oil company," said clean-energy investor Thomas Steyer.

The fact that Keystone would create jobs in America has helped it gain a great deal of support, but Consumer Watchdog says the value of temporary jobs is unequal to the cost for Americans if the pipeline is completed.

“U.S. consumers should be wary of the Keystone XL pipeline — not just for substantial environmental and safety reasons, but because it threatens their wallets,” Consumer Watchdog said in a press release. “Given the fleeting benefits of construction jobs, the unprovability of long-term benefits and the negative effect of higher gasoline costs on consumers, Keystone XL is no economic boon to the United States. U.S. consumers and the overall economy would bear the substantial risks of the pipeline without measurable permanent benefit."

The group created the following info-animation in order to explain their report.

Sources: MSN NowDaily CallerReuters


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