Economic Opinions

Export Pipelines Won't Help Economy

While export pipeline proponents vaguely reference economic benefits, history shows us otherwise.  One need only look to the experience of Alaskans, who live on huge oil reserves but pay extremely high prices for gas for evidence of this. Projects like the Bluegrass Pipeline, the Constitution Pipeline, and the Keystone XL are unlikely to help the economy.  If the Keystone XL pipeline is built, Americans could pay as much as 40 cents more per gallon for gasoline in some parts of the country, according to a new report by the nonprofit organization, Consumer Watchdog. That’s because oil extracted in Canada would start to bypass traditional American markets, traveling through the pipeline to the Gulf Coast and onto tanker ships bound for international markets where oil fetches higher prices, reports The Grist.