Mr. Chairman, I have an amendment at the desk. Mr. Chairman, Americans are turning to the Federal Government for relief from high gas prices. However, approval of the Keystone XL pipeline will lead to exactly the opposite result; it will…
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, Americans are turning to the Federal Government for relief from high gas prices. However, approval of the Keystone XL pipeline will lead to exactly the opposite result; it will actually raise gas
prices--principally in the Midwest. In fact, some of the States that will suffer the worst gas price increases are the same ones that will have to bear the environmental burden of this pipeline.
This is not just my conclusion, this is the conclusion of TransCanada, the company that wants to build the Keystone XL pipeline. This is the conclusion of international energy consultant Purvin and Gertz, Inc., the company that TransCanada hired to evaluate its Keystone XL pipeline. And this is the conclusion of respected oil market economist Philip Verleger. That is why TransCanada wants to build this pipeline.
My amendment simply requires the Secretary of Energy to analyze the effect of the proposed pipeline on increased gas prices for American consumers and to determine if this pipeline is just an effort to manipulate the market for crude oil in the United States.
The proposed pipeline would carry up to 900,000 barrels per day of tar sands oil from Alberta, Canada over 2,000 miles to refineries on the U.S. gulf coast. Proponents have claimed that it would bring down oil prices.
However, TransCanada's permit application to the Canadian Government for the pipeline included documents and testimony which said Canadian oil companies could use the pipeline to increase America's fuel bill by up to $4 billion per year by limiting the supply of Canadian crude to Midwest refineries and rerouting it to gulf coast refineries. This benefit to Canadian oil companies was used by TransCanada to argue that approval of the pipeline was in Canada's interest, but this information was conveniently hidden when TransCanada applied for the U.S. Presidential permit from the State Department.
This information comes from a report by international energy consultant Purvin and Gertz, Inc., the company that TransCanada hired to evaluate its Keystone XL pipeline.
In section 3.4.3 of their report, they concluded that there was an oversupply of crude oil in the Midwest that resulted in lower prices for Canadian crude oil and that the Keystone XL pipeline would remove this oversupply and raise crude oil prices in the market. In section 3.4.5 of their report, they recite that ``Keystone has reviewed the PGI assessment and agrees with its conclusions.''
Through manipulation of U.S. oil markets, the Keystone XL pipeline will increase U.S. gas prices by 10 to 20 cents per gallon across the United States, according to respected oil market economist Phillip Verleger. However, the greatest price increase--twice as much by one estimate--will occur in 15 States, including my State of Ohio, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, and Wisconsin. It is estimated to increase prices by $6.55 per barrel of crude oil in the Midwest and $3 per barrel across the U.S.
This market manipulation will gouge American consumers, forcing them to hand over up to 3.9 billion hard-earned American dollars to foreign oil companies every year. While this boon may benefit TransCanada and Canadian oil shareholders, it will only further devastate the American people, our economy, and farmers who are already struggling financially and can't afford a gas price hike.
Americans want low gas prices. Permitting the Keystone XL pipeline will deliver the opposite by increasing prices at the pump and making Americans pay more and more for almost every commodity they purchase.
I urge my colleagues to protect Americans from being further gouged by foreign oil companies and to support my amendment.
I reserve the balance of my time.
How much time remains?
The bottom line is the people whose jobs depend on their being right, and a company with billions of dollars at stake, all concluded that increases in price of gas will especially hit the Midwest as a result of this pipeline. These aren't just employees of TransCanada; these people are experts, legal experts who put this in an application. This is not a bogus argument.
If that is a bogus argument, to my friend, then that information should be conveyed to the Government of Canada, because TransCanada's permit application to the Canadian Government for a pipeline included documents and testimony which said that Canadian oil companies could use the pipeline to increase America's fuel bill by $4 billion per year by limiting the supply of Canadian crude to Midwest refineries and rerouting it to gulf coast refineries.
Stand up for the American consumer.
I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.