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Report: Keystone XL = High Gasoline Prices

WASHINGTON, (UPI) — The planned Keystone XL oil pipeline would move oil away from refineries that produce gasoline, increasing prices, the National Resource Defense Council says.

Canadian pipeline company TransCanada has petitioned the U.S. government to build its Keystone XL oil pipeline. Marty Durbin, executive vice president at the American Petroleum Institute, said the project is a “job creator” that “could help bring downward pressure on prices at the pump” by transporting an estimated 830,000 barrels of oil from Canada into the U.S. market every day.

Supporters of the pipeline say it’s vital to U.S. energy security. Critics say many of the claims are exaggerated and characterize so-called tar sands oil, a type of crude designated for Keystone XL, as the dirtiest type of oil currently produced.

The National Resource Defense Council, in a 16-page report, said Keystone XL would divert oil away from refineries in the U.S. Midwest, which produce gasoline, to refineries along the southern coast, which produce diesel.

“By taking oil from Midwestern gasoline refineries to Gulf Coast diesel refineries, Keystone XL will decrease the amount of gasoline available to American consumers,” thereby increasing prices, the report states.

The NRDC said TransCanada lobbied the Canadian government for the project by stating it would increase the price of crude oil sold to the United States.

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