Wednesday, May 23, 2012

Keystone pipeline would DECREASE gasoline production

Republicans have been trying to score political points against Obama for not approving the Keystone XL pipeline construction, even though it could have caused serious environmental harm.   They claim the pipeline would increase domestic production and thus reduce the price at gasoline pumps, and they hoped that it would seem self-evident to the average voter:   more gasoline produced in the U.S. = lower prices.    A variation on "Drill, baby, drill."   Plus making us less dependent on "foreign" oil (Canada is a friend, after all, even if "foreign.")

That outcome was not true, even on the face of it, given that the fluctuating price of gasoline is primarily the result of crude oil prices on the global markets, and the president has virtually no control over that.   Further, Keystone would not in itself increase production of gasoline for domestic use;  whatever it produced would simply go onto the world markets and be absorbed.

Now comes a study released by the Natural Resources Defense Council, which in fact contradicts the Republicans' (bogus) claims:   The Keystone XL pipeline would actually decrease gasoline production in the U.S.   In fact, when TransCanada first proposed the pipeline, their selling pitch was that it would drive up U. S. prices and hence give Canadians more revenue for their crude oil.

But of course reality matters little to Republicans who see a possible political point to score against Obama;  after all, what does a little lying matter when the future of capitalism depends on defeating him in November?

Here's how the NRDC says this would work:

Currently, crude oil from Canada goes to refineries in the U. S. Midwest, which are designed to produce as much gasoline as possible from the crude oil.   With the Keystone XL pipeline diverting much of that crude oil to refineries on the Gulf Coast, the U. S. production of gasoline would actually decrease, because Texas Gulf refineries are designed to produce as much diesel fuel as possible.

Thus, there would be an overall decline in gasoline production and an increase in diesel production by U. S. refineries.

Republicans are dead set on forcing the pipeline approval.  Obama has said he will veto the bill.  Look for this study to be smeared in some way by special interest money.  If NRDC is to be believed, might it make a difference?   Or is the lobbying money just too enticing to let actual facts come into the picture?

Ralph

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