In earlier articles, including Majority supports Keystone XL, or do they?, I wrote about oil companies aiming to move Canadian oil to tidewater so that exports can create shortages and drive domestic prices higher.
A Calgary reader left a comment that included this:
Keystone XL is a great project it will help Canada and the United States by integrating our energy Markets. It will transport Alberta and Bakken oil to hungry refineries on the Gulf Coast of Texas.
I doubt that ordinary Canadians agree that integrating energy markets with the USA is a good idea but the reader is correct that Texas Gulf refineries are hungry for direct access to our crude. However, there will be little benefit for North American consumers. McClatchy Newspapers reports that U.S. gasoline prices are at record levels because of record level exports:
U.S. refineries exported a record amount of refined fuels in 2011 to markets in South America, Central America and Europe. It was one reason why Americans spent a record amount on gasoline this year: Supplies that might have helped lower prices here had been shipped abroad…
No wonder that our crazy world of crony capitalism aims to privatize every public resource. Imagine if industry were able to create shortages in Canada by massive exports of fresh water or, as blogger RossK points out, electricity. Then, Canadians could be told that water and electricity are precious resources and their price must reflect the scarce supply. For our own good, of course.
Categories: oil and gas