The big oil companies and financiers are pushing for the expansion of Keystone pipelines throughout North America by claiming the pipes will reduce gas prices at the pump. Not true.
Unfortunately, the Keystone XL Pipeline from Alberta to Texas is about:
in selling “Tar Sand oil” with the goal of exporting it to foreign countries.
Tar sand oil is one of the most expensive and damaging methods to extract oil from sand, and has many opponents from both Canada and the United States. The myth that Tar Sand Oil from the Keystone Pipeline will reduce prices at the pump are entirely untrue.
Also the claim of “Energy Independence” is another myth, because the approvals from the US and Canadian government do “NOT” guarantee domestic use for the end product. This translates to “no assurances” that the dirty oil will not be sold to the “highest bidder” excluding the Canadian and American consumer as low man on the totem pole.
Keystone is being marketed with slick ads and commercials in print and on TV about “Energy Independence” but high gas prices will continue as long as profits are in the picture and there will not be reducing gas prices at the pumps.
Keystone will Increased Oil Company Access to Foreign Markets
The pipeline will transport oil from the Northwest to the southern state of Texas refineries, where it will be turned into gasoline. The company Trans Canada actually stated to the Canadian Government, that the Keystone XL Pipeline was a way to jack up the price of crude to the United States!!
Currently there is a surplus of gas on the market, production is up and consumption is down and still gas prices are killing the economy.
Gas Prices are Doing Very Well
Keystone Tar Sands Oil is More Expensive than Regular Oil
Bloomberg reports that Keystone would bring higher gas prices -not lower prices to consumers which is the exact opposite of what the oil company’s claim.Firstly, gas and oil prices are set by the market, therefore their claim of “reducing prices” doesn’t make sense, it doesn’t work that way. back about 10 years ago, when Canada was investigating tar sands as a viable project, the facts came out in the media that are not known today.
The facts are that in order for oil companies to turn a profit on Tar Sand Oil oil prices would have to stay above the $100.00 a barrel mark to recoup their high cost investments in the dirty oil.
Destroying Five Natural Resources for One Barrel of Dirty Oil
Tar sands requires the destruction of five natural resources to make one dirty barrel of oil. Five Resources that cannot be replaced – ever.There is no economical sense to destroy: air, water, land, natural gas and trees to produce a dirty, filthy product and leave a massive toxic sludge around open pit craters in Alberta’s boreal forests.
The Alberta Boreal Forests Will be Gone Forever
Even if you are not an environmental advocate, when you destroy an eco-system it had better be for a better eco-system. The earth is being destroyed of life giving forests, that absorb carbon, that feed life and that make the world cleaner.
The Alberta Boreal forest area is 144,000 square miles cited to be destroyed by the Canadian government will destroy the second biggest eco-system on earth next to the Amazon rainforests.
Plus the native land rights of Canada’s native population covered under hundred year old treaties, would be completely ignored causing major lawsuits.
The fact that Tar sands oil is so very dirty comes from the very difficult process of extracting oil from the sand it leaves massive pools of toxic sludge in the province of Alberta behind.
Oil Company Profits 2012
Exxon Mobile posted profits of 9.45 billion in the first quarter this year of 2012, Royal Dutch Shell in Europe posted profits up 15.9 percent, BP Oil profits were 5.9 billion, Chevron at 6.5 billion, Shell at 8.7 billion for a total of 33.5 billion dollars of profits for the big five oil companies. (See Think Progress)
In 2011 the big oil companies made a total of a record breaking 137 billion in profits with their CEO’s receiving higher pay checks of from: 20 % to a whopping 300% increase in pay for the British Petroleum CEO, and they are not hurting at all.The big three in the United States also received tax breaks with lower tax rates.
Since we have established that the Keystone Pipeline is not about energy independence, not about lower gas prices at the pump and oil companies are enjoying record profits the only remaining question is: Why are we allowing it?
Keystone Pipeline will endanger a massive geographical area with oil spills, pollution damage, increased air pollution at refineries and a huge destruction of forests, water, gas and air in Alberta’s tar sands area. Plus, it is leading the country into a continuation of fossil ideas of energy not modern, clean sustainable energy sources where we should be investing like China. The US is falling behind due to oil company lobbyists, who are controlling government policies on energy to keep their profits higher.
The longer oil companies promote Keystone pipeline producing oil and gas, the longer consumers will be paying them for $4.50 or higher a gallon forever. It is a false form of dependency on oil and gas and consumers deserve better.