If Keystone is diverted away from the Mid-West refineries to the Gulf coast refineries then gas prices WILL rise in the Mid-West due to increased US production vs what they're getting today by way of the Canadian oil. "Oversupply" being relieved as you state means higher prices for the Mid-West since they'll no longer have access to the oil destined for overseas markets. There is NO mechanism for prices rebounding and stabilizing as you say. Only higher prices for Americans due to Supply and Demand.
So please explain to me what in the hell do you mean by "rebounding and stabilizing" of oil not destined for US markets. Do you understand what's about to happen if Keystone is allowed to go through. Higher gas prices and tell me again who's benefiting? Canada and the gulf coast refiners? Certainty not the US economy.
This is a losing argument all the way around for Republicans but once again they have the dumb unintelligent masses thinking they're missing out on something.
UN-freaking-beleivable
Originally Posted by Zanzibar789
Wow. You are un-freaking-believable. Where do I start? Let's keep it simple - you need to think in terms of GLOBAL supply and demand for oil. The big picture. That's where benchmark prices are set. If global production is 90 million bpd and global consumption is 89 million bpd, the extra 1 million bpd in supply will exert downward pressure on oil prices everywhere. Where the stuff is coming from and where it is going is secondary.
So even if some of the oil from Canada or North Dakota is destined for overseas markets, it benefits ALL consumers everywhere because it adds to global supply. You overlook the fact that when overseas buyers purchase from us, they buy less from other sources. Those other suppliers turn around and sell to someone else - maybe a refiner in Boston or Rotterdam. Supplies are rejiggered and redirected every day. A single cargo of crude loaded onto a supertanker in Kuwait will be bought and sold multiple times before it reaches its destination.
Global oil markets are efficient and will provide the "mechanism" for getting Bakken and Canadian crude to where it is needed, Keystone or no Keystone. If people in the Midwest see a spike in gas prices when the pipeline comes onstream (I'm not convinced this will happen), it will be modest and temporary. And no one will be complaining. Prices will still be down 30-40% from a few years ago. So try to keep your eye on the BIG PICTURE, zanyzit.
Keystone is actually a winner for everyone - not just Republicans, but thinking Democrats, the economy, US energy independence, global consumers. I agree it should be built with proper safeguards, but it shouldn't be controversial at all.
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