Keystone Pipeline Investment Warning

Keystone Pipeline to Increase Gas Prices

Written by Green Chip Stocks
Posted May 25, 2012 at 4:22PM

Contrary to popular belief, it turns out the Keystone XL Pipeline may actually raise gas prices.

As reported in the Huffington Post, the Natural Resources Defense Council (NRDC) recently released a report detailing how the tar sands pipeline would actually do the exact opposite of what its meant to do.

According to NRDC attorney Anthony Swift, the pipeline’s impact on gasoline prices is “one of the most misunderstood issues surrounding the proposed Keystone XL.” In addition, Swift states that when TransCanada initially thought of the idea, the pipeline was proposed as a way to increase the cost of oil in the US while providing more revenue for Canadian producers. This is in stark contrast to how the pro-oil crowd has been selling the pipeline for months.

Swift goes on to say that the NRDC study has “found that Keystone XL is likely to both decrease the amount of gasoline in US refineries for domestic markets and increase the cost of producing it, leading to even higher prices at the pump.” These findings come at a time when both the House and Senate are trying to figure out the transportation bill that would affect this pipeline. The House version of the bill would approve the pipeline, overriding Obama’s temporary objection. The Senate version does not have this provision, at least not yet. President Obama has promised a veto to any measure that includes Keystone XL approval.

Enjoy this article? Get more in our Free Newsletter

Get the inside track on the most lucrative stock plays in today's scorching-hot alternative and renewable energy markets.

Sign up for the FREE Energy and Capital daily e-Letter from alternative energy experts Jeff Siegel and Nick Hodge. We'll also send you our latest report on Wind Investing straight to your inbox.

Your Privacy is Assured.

Jeff Siegel on CNBC

Green Chip Stocks Editor Jeff Siegel, featured guest on CNBC's Green Week

Related Articles

Montana Oil Spill Update
Montana residents concerned over new oil spill discoveries.
Arctic Oil Spills Coming
Drilling in the Arctic - a recipe for disaster.
Colorado Pipeline Fight
Colorado residents want pipeline dismantled.