Keystone XL and Gas Prices

In the media wars surrounding the Keystone XL pipeline, there is an ongoing debate over whether its construction would raise gasoline prices. Economist Jeff Rubin -- who published an extremely flawed book titled The End of Growth that myself and a colleague systematically debunked -- claimed the following: "The proposed Keystone line would facilitate an ideal marriage between Texas refineries hungry for more supply and new Canadian oil in need of a home. A surplus of oil backing up at Cushing [Oklahoma] has turned into a sweet deal for Midwest refineries, and it's why West Texas Intermediate crude (WTI) traded for more than $20 a barrel lower than benchmark world oil prices for most of 2011. Without a new pipeline, Midwest refiners will get to keep paying a discounted price for Canadian oil. What exactly happens to that missing $20 a barrel? US motorists certainly don't get a break at the pumps. By and large, American drivers pay the same price no matter where in the country they...(Read Full Article)