I heard that the Canadian oil is most fit for refining into diesel fuel that would be most marketable in Europe. With limited refining capacity in the US (no new refineries in decades) the production of European diesel will reduce the supply of gasoline hence raising the cost of gasoline. I’m no petrochemist and this explanation could be true but it doesn’t ring true to me. Anyone know better?
Umm, no. Refiners will produce the most profitable product from available feedstock. Increased supply of feedstock, even heavy oil, will decrease the price of feedstock and add to the supply of all refined products. Adding to the supply helps stabilize or reduce prices for all petroleum products.
Keystone oil will replace heavy oil imported from Venezuela.
Allow me to explain the Keystone deal. Energy is the lifeblood of a modern society. TransCanada Pipelines wants to build a delivery system that will pump 650,000 B/D of oil into the US. This oil will come from your closest ally, neighbor and trading partner. The supply will not be interrupted by war, politics, weather, whim, or terrorism. Even if you elect an anti-white, anti-conservative, anti-Christian fascist president, the supply will not be interrupted.
In exchange for this oil, Canada will receive little bits of colored paper, or more likely, entries on an electronic ledger denominated in US dollars.
Could you explain to me how this is a bad deal for the US?