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Why the Keystone pipeline would boost pump prices

tererun

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Why the Keystone pipeline would boost pump prices - NBC News.com

Rising gasoline prices have helped proponents of a controversial pipeline proposal press their case that the project would help ease supply bottlenecks and lower prices for consumers.

They’re half right.

The proposed pipeline would relieve a glut of crude oil backing up in the Midwest and redirect those barrels to Gulf of Mexico ports. From there they could be shipped to world markets and repriced at higher global prices.

But that likely would mean higher prices for drivers in the nation's midsection, who currently are enjoying an unusual discount stemming from a lack of pipeline capacity.
So why do the oil companies really want the oil pumped way down to texas as opposed to just refining it for US sales in the north? It seems that oil is not able to find a global market due to it being landlocked. This means it is already being distributed at lower costs to the american midwest keeping their gas prices down. When it gets pumped to texas it will be able to be placed into global markets which will in turn increase it's value. Isn't it amazing how stupid it sounded to some of us to go through the expense of a cross country pipeline just to get this oil to texas for something they could do elsewhere? Yet we hear from conservative tools that texas is the only place that can handle this and we will all reap the benefits of cheaper gasoline and oil if we sacrifice for this insane plan. in the end we find that it is really just a marketing ploy to get more profit from oil for the oil companies while screwing the rest of us over.

Perhaps they should rename drill baby drill to screw them baby screw em?
 

Fiddytree

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I'm under no illusion that it will lower the pump cost, nor do I care about the environmental aspect. It will just continue to help our state and local economy for a short and mid-term level.
 

tererun

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I'm under no illusion that it will lower the pump cost, nor do I care about the environmental aspect. It will just continue to help our state and local economy for a short and mid-term level.
But it wont. The states it is supposed to help by providing employment will see a massive increase in gas prices. These are not states with massive public transportation people can use, or even the capability of providing good public transportation to rural areas to offset the rising costs of living they will have to endure. This will cause them to have less spending money to purchase things which will lower commerce and depress the area further.
 

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Why the Keystone pipeline would boost pump prices - NBC News.com



So why do the oil companies really want the oil pumped way down to texas as opposed to just refining it for US sales in the north? It seems that oil is not able to find a global market due to it being landlocked. This means it is already being distributed at lower costs to the american midwest keeping their gas prices down. When it gets pumped to texas it will be able to be placed into global markets which will in turn increase it's value. Isn't it amazing how stupid it sounded to some of us to go through the expense of a cross country pipeline just to get this oil to texas for something they could do elsewhere? Yet we hear from conservative tools that texas is the only place that can handle this and we will all reap the benefits of cheaper gasoline and oil if we sacrifice for this insane plan. in the end we find that it is really just a marketing ploy to get more profit from oil for the oil companies while screwing the rest of us over.

Perhaps they should rename drill baby drill to screw them baby screw em?
Much of the country

Notice where most of the refineries are and where the greatest refining capacity is? Um, that is why they don't refine it up north.

On another note, go ahead and buy that "regular" gas in those green areas on your map. Been through there, a lot. 85 and 86 octane is very common there and if your car requires 87 or higher, there is a huge jump in price up to mid-grade to meet that requirement.
 

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But it wont. The states it is supposed to help by providing employment will see a massive increase in gas prices. These are not states with massive public transportation people can use, or even the capability of providing good public transportation to rural areas to offset the rising costs of living they will have to endure. This will cause them to have less spending money to purchase things which will lower commerce and depress the area further.
It will help my states economy for a long, long time. Oh, thats right, we have most of the high capacity refineries.
 

tererun

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Much of the country

Notice where most of the refineries are and where the greatest refining capacity is? Um, that is why they don't refine it up north.

On another note, go ahead and buy that "regular" gas in those green areas on your map. Been through there, a lot. 85 and 86 octane is very common there and if your car requires 87 or higher, there is a huge jump in price up to mid-grade to meet that requirement.
First off, the prices are already low because the oil is being refined and distributed in the landlocked areas. The reason to ship it to texas is because it would get to the texas ports which would give it a global market. We are already seeing the benefit in areas of this oil being distributed as gasoline so that argument fails. Also, there is a huge jump in gas prices as you increase octane in every state I have seen. That is not new at all. If you do not own a car that requires those higher octane fuels this is not even an issue so buy american as most american cars run fine on lower octane fuels.
 

tererun

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It will help my states economy for a long, long time. Oh, thats right, we have most of the high capacity refineries.
Oh good, we should all suffer across the country so texas oil tycoons can become richer. I can see why texas would want it, but that is not a good argument for the rest of the states.
 

Fiddytree

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Oh good, we should all suffer across the country so texas oil tycoons can become richer. I can see why texas would want it, but that is not a good argument for the rest of the states.
As would North Dakota. Screw the rest of the states.
 

washunut

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Why the Keystone pipeline would boost pump prices - NBC News.com



So why do the oil companies really want the oil pumped way down to texas as opposed to just refining it for US sales in the north? It seems that oil is not able to find a global market due to it being landlocked. This means it is already being distributed at lower costs to the american midwest keeping their gas prices down. When it gets pumped to texas it will be able to be placed into global markets which will in turn increase it's value. Isn't it amazing how stupid it sounded to some of us to go through the expense of a cross country pipeline just to get this oil to texas for something they could do elsewhere? Yet we hear from conservative tools that texas is the only place that can handle this and we will all reap the benefits of cheaper gasoline and oil if we sacrifice for this insane plan. in the end we find that it is really just a marketing ploy to get more profit from oil for the oil companies while screwing the rest of us over.

Perhaps they should rename drill baby drill to screw them baby screw em?
Let's be kind and say that when the article you cite talks about higher priced crude, it is talking about the spread between Brent and WTI. At the time of the article the spread was very high, approximately $20/barrel.

Currently there is virtually no spread between Brent and WTI, so the premise of this thread is false on it's face.
 

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Oh good, we should all suffer across the country so texas oil tycoons can become richer. I can see why texas would want it, but that is not a good argument for the rest of the states.
Fine by me. Let those who voted for Obama suffer and those who didn't gain. Perfectly good plan to me. Screw the Libo's. Others don't have the refineries because of their goon squad, the EPA, so it's their own damned fault.

You also seem to of confused me with someone who actually cares about many sections of our country anymore. The vote for Libo's, ****'em, I don't give a damn.
 

differentDEM

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If only Carter had a 2nd term...
it is unbelievable that we are still having this debate when, Tesla cars and the Prius are available
 

tererun

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As would North Dakota. Screw the rest of the states.
yeah, except for the gas prices being over 20 cents more per gallon because the gas they get now has to be shipped up to them from texas refineries who sell on a global market instead of shipped down to them from canada.
 

tererun

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Let's be kind and say that when the article you cite talks about higher priced crude, it is talking about the spread between Brent and WTI. At the time of the article the spread was very high, approximately $20/barrel.

Currently there is virtually no spread between Brent and WTI, so the premise of this thread is false on it's face.
So your evidence this is not true is the effect of the pipeline that causes oil prices to rise in the midwest. Doesn't that mean the effects are true?
 

tererun

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Fine by me. Let those who voted for Obama suffer and those who didn't gain. Perfectly good plan to me. Screw the Libo's. Others don't have the refineries because of their goon squad, the EPA, so it's their own damned fault.

You also seem to of confused me with someone who actually cares about many sections of our country anymore. The vote for Libo's, ****'em, I don't give a damn.
So what you are saying is everyone else should allow this because it benefits texas and you like that? You might want to find a good reason for other people to vote for that because it doesn't seem texas is a good reason for the rest of us.
 

DVSentinel

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So what you are saying is everyone else should allow this because it benefits texas and you like that? You might want to find a good reason for other people to vote for that because it doesn't seem texas is a good reason for the rest of us.
And what reason have ya'll given the citizens of the Republic to give a damn about you?
 

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Why the Keystone pipeline would boost pump prices - NBC News.com



So why do the oil companies really want the oil pumped way down to texas as opposed to just refining it for US sales in the north? It seems that oil is not able to find a global market due to it being landlocked. This means it is already being distributed at lower costs to the american midwest keeping their gas prices down. When it gets pumped to texas it will be able to be placed into global markets which will in turn increase it's value. Isn't it amazing how stupid it sounded to some of us to go through the expense of a cross country pipeline just to get this oil to texas for something they could do elsewhere? Yet we hear from conservative tools that texas is the only place that can handle this and we will all reap the benefits of cheaper gasoline and oil if we sacrifice for this insane plan. in the end we find that it is really just a marketing ploy to get more profit from oil for the oil companies while screwing the rest of us over.

Perhaps they should rename drill baby drill to screw them baby screw em?
Have a look at the map and ask yourself why they say there is a "glut of crude oil backing up in the Midwest". Cars don't burn crude oil, which means the businesses that are operating there produce less than they otherwise would. Do you have something against good-paying jobs popping up in the Midwest? Google Image Result for http://www.eia.gov/todayinenergy/images/2012.07.19/refinerymaplarge.png
 

Gonzo Rodeo

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Pipelines are infrastructure, and they require a sizable workforce to construct.

Isn't that what deficit jobs programs are supposed to do, according to liberal theology?
 

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The problem of course is that the Oil ships from Canada, travels several thousand miles across American resevoirs and croplands, and then gets refined and shipped across the world. The U.S. takes almost all the risks so that the rest of the world can get lower prices. That's not oil that's going to benefit American exlusively or even primarily. But I'd be fine with this setup if the states/companies with the pipelines would handle the infrastructure, but they usually don't. Another problem is if/when an oil spill takes place then FEDERAL DOLLARS will be used to clean up the mess. The states/corporations involved should be responsible for the cleanup, but we all know that that won't happen. It's yet another example of privatizing profits and socializing losses that we've seen year after year.
 

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Replacing oil as the primary transportation fuel will lower pump prices. Short of that, they're only going up.
 

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Why the Keystone pipeline would boost pump prices - NBC News.com



So why do the oil companies really want the oil pumped way down to texas as opposed to just refining it for US sales in the north? It seems that oil is not able to find a global market due to it being landlocked. This means it is already being distributed at lower costs to the american midwest keeping their gas prices down. When it gets pumped to texas it will be able to be placed into global markets which will in turn increase it's value. Isn't it amazing how stupid it sounded to some of us to go through the expense of a cross country pipeline just to get this oil to texas for something they could do elsewhere? Yet we hear from conservative tools that texas is the only place that can handle this and we will all reap the benefits of cheaper gasoline and oil if we sacrifice for this insane plan. in the end we find that it is really just a marketing ploy to get more profit from oil for the oil companies while screwing the rest of us over.

Perhaps they should rename drill baby drill to screw them baby screw em?
This article doesnt use common sense. Oil prices are based on global speculation (based on supply and demand). More oil entering the market means speculators will guess global oil prices down, which means market prices down, which means gas prices down globally (everything else being equal).

The alternative is the oil will be shipped on trains and trucks, which will derail and explode, to the coast and then off to foreign refineries.
 

jonny5

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And this is before we even get to the idea that its none of the federal govts business whether the pipeline gets built. The states want it, the coporations are paying for it, it doesnt impact the environment. The federal govt doesnt have the power to forbid it. Maybe its time to sue them again, just like they had to do over gulf drilling moritorium.
 

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And this is before we even get to the idea that its none of the federal govts business whether the pipeline gets built. The states want it, the coporations are paying for it, it doesnt impact the environment. The federal govt doesnt have the power to forbid it. Maybe its time to sue them again, just like they had to do over gulf drilling moritorium.
In this day and age the government elites believe that EVERYTHING is their business...From the toilet you flush, to the soda you drink....What we are witness to is the transition from "soft tyranny" to full, and exposed tyranny. The question is how far will we allow it to go.
 
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