More Discussion About the Rise of Midwest Oil Prices
Will the Keystone XL pipeline increase the oil prices in the Midwest? Journalstar.com reported that Louis Fenyvesi of TransCanada and Philip Verleger, a professor at the University of Calgary, have differing ideas of what will happen to midwest if the pipeline is constructed.
Verleger, a one-time energy policy consultant to President Jimmy Carter’s administration, and Fenyvesi, TransCanada’s manager of markets and supplies, do agree, for example, on what might strike Nebraskans as surprising: Construction of the proposed Keystone XL pipeline would raise the price of Canadian crude oil delivered to the Midwest refineries that commonly serve Nebraska’s needs.
Verleger predicts a 7 cent increase in Canadian Crude if the pipeline is built. He claims that the owners of the tar sands oil deposit will take advantage of the market and create this price increase. The National Wildlife Federation agrees with Verleger’s prediction.
Supporters of the pipeline claim the Keystone XL will reduce dependence on Middle Eastern oil. Proponents of the pipeline believe that the increase in the price of Canadian Crude is another reason why the US State Department should look at every aspect of the construction of the pipeline before a decision is made. TransCanada is hoping approval of the pipeline will come before the end of the year.