NRDC, Oil Change International and ForestEthics Advocacy released a report today, “Keystone XL: A Tar Sands Pipeline to Increase Oil Prices,” that blows apart the tar sands industry’s claims that building the Keystone XL pipeline would lower gasoline prices in America. The report lays out how Keystone XL would reduce gasoline supplies in America by diverting Canadian tar sands crude from the Midwest to the Gulf Coast.
So put simply, Keystone XL moves existing crude oil supply from refineries that have been producing gasoline predominately for the US market to refineries that are predominately producing diesel for the export market. This will lower the amount of gasoline produced in America, raise the price Midwest refineries pay for crude oil and lead to higher gasoline prices.
None of this should be a surprise. The industry has no interest in lowering gas prices, why should it? It has for a long time enjoyed a monopoly on transportation fuel. Today, as demand trends shift slowly towards greater efficiency and alternatives, the prospects of raising American demand for oil are fading. The response is to export in order to maintain revenues and maintain prices. The industry is doing its fiduciary duty to its shareholders to maintain and grow profits in a changing global market. It has no such duty to consumers and citizens.
The biggest lease owner in Canada's oil sands isn't one of the well-known international oil giants. It's a subsidiary of Koch Industries, the privately owned cornerstone of the fortune of conservative Koch brothers Charles and David.
Building Keystone XL Pipeline Could Mean Roughly $100 Billion in Profits for the Koch Brothers, New Report Reveals.
- The Kochs could earn 1 million times more than the average worker of the pipeline.
- Evidence suggests The Kochs alone be responsible for over 19 billion metric tons of carbon emissions in their tar sands holdings.
- Think tanks funded by the Kochs have released nearly 1000 pro-KXL reports or statements.
- Kochs have already made billions from insider trading and stand to do that again with tar sands.
- Koch Industries has a history of violence against people and the environment.
- The Koch Brothers seek to alter the public debate and control the policy debates in Washington.
“The Kochs have repeatedly claimed that they have no interest in the Keystone XL Pipeline, this report shows that is false.” Said Nathalie Lowenthal-Savy , a researcher with IFG. “We noticed Koch Funded Tea Party members and think tanks pushing for the pipeline. We dug deeper and found $100 billion in potential profit, $50 million sent to organizations supporting the pipeline, and perhaps 2 million acres of land. That sounds like an interest to me.” Nathalie continued, “We all know they will use that money to fund and expand their influence network, subvert democracy, crush unions like in Wisconsin, and get more extremists elected to congress.