At the risk of getting involved in a political issue, I want to write a series of blogs on the Keystone XL pipeline from Canada into the Midwest. In my research, here is what I know, as a way to begin discussion on the topic.
The Keystone XL pipeline, which would carry 1.1 million barrels per day, is specifically designed to deal with the fact that increased production of crude oil in Canada and the Great Plains has left a glut in that area. This has caused an overwhelming refinery demand, and the goal is to get the oil to the Gulf Coast, the center of U.S. refining, and this has been very difficult. The pipeline has been tied up by factors, from the environmental concerns to the age old complaint with development, Not In My Backyard (NIMB). One of the initial outcomes has been the depressed the price of crude oil in the Midwest, though the Midwest refiners have not passed on the savings to consumers. (The price of gasoline in that area essentially is dependent on the global price because otherwise refiners would not ship the gasoline there.)
This said, and there is a lot written and spoken on this subject, the future of Keystone XL comes down to a political issue, and currently it seems the current Administration is not going to move forward on the project. Stay tuned.
In the meantime, check out our listings at www.gasstationsamerica.com
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