Fact: Keystone XL is not an export pipeline.
It is a supply line to U.S. Gulf Coast refineries which have signed up to 20-year binding commercial contracts to receive oil through Keystone XL. This much-needed oil will allow refineries to create products that we all rely on every day gasoline for our vehicles, aviation fuels, and diesel fuels to help transport goods throughout the continent. It makes absolutely no sense for companies to purchase cheaper Canadian crude, and then pay (again) to ship that product overseas, while continuing to import higher-priced oil from the Middle East and Venezuela.
In fact, the State Departments own Environmental Impact Statement addresses this directly:
Exports of Canadian crude are unlikely to be economically justified for any significant durable trade given transport costs and market conditions.
Once [Canadian crude] arrives at the Gulf Coast, Gulf Coast refiners have a significant competitive advantage in processing compared to foreign refiners who would have to incur additional transportation charges to have the crude oil delivered from the Gulf Coast to their location.
Gulf Coast refiners traditional sources of heavy crudes, particularly Mexico and Venezuela are declining and are expected to continue. Both the EIAs 2013 AEO and EnSys WORLD model indicate that this demand for heavy crude in the Gulf Coast refineries is likely to persist.
EnSys modeling shows no export of light or heavy crude carried on Keystone XL or any other pipeline into PADD 3 onward to overseas markets, confirming the barriers that PADD 3 heavy crude demand and transport costs.
The U.S. is an overwhelming net importer of crude oil. The International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) have both forecast the U.S. will still need to import oil to meet its domestic demand for decades, despite growing oil production in the U.S. Canadian and U.S. production transported by pipeline will displace more expensive crude oils from less stable countries.
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Myths & Facts | Keystone XL Pipeline