Report Says Keystone XL Means Higher Oil Prices

A report from TransCanada Corp. says the oil company’s proposed Keystone XL pipeline, which would move oil from Canada through several U.S. states, will increase the price of U.S. oil. The 2008 report prepared for Calgary-based TransCanada said existing markets for Canadian crude are oversupplied, especially in the Midwest. That oversupply has led to lower oil prices. The report said if Keystone XL begins transporting crude to the Gulf Coast in 2013, the Midwest supply will be limited and TransCanada will boost oil prices by $3 a barrel. The National Wildlife Federation said the price hike could mean gas prices increases of at least 7 cents a gallon. TransCanada says Canadian crude is still “the cheapest crude oil available to Americans by volumes.” ((25 JAN 2011))







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