I would like to respond to U.S. Rep. Tom Rice's (Feb. 4) letter to the editor about approval of Keystone Oil pipeline. The congressman makes 10 points why President Obama should approve the pipeline.
I will respond to his first point only. The honorable congressman states the approval of the pipeline will lower gasoline prices. It makes me wonder if the good congressman has made any recent trips to Denver or Seattle for recreational purposes.
Dr. Mark J. Perry of the American Enterprise Institute, a conservative think-tank in Washington D.C., reported domestic crude oil production has increased 36 percent from August 2011 through August 2013.
The barrels-per-day production went from 5.56 million bpd to 7.57 million bpd. So why haven’t gasoline and diesel fuel prices decreased? Well, there is a glut of a crude oil supplies in a regional supply terminal in Oklahoma. That’s what the oil companies are doing to keep prices high.
They have increased their exports of refined products like gasoline and diesel fuel to keep retail gas prices high in the domestic market. If the pipeline is approved, the glut of crude oil in Oklahoma will decrease dramatically.
The reason for this is all of the oil coming from Canada will bypass this facility and go straight to refineries in Galveston Bay in Texas. The president of Trans Canada, Alex Pourbaix, for energy and oil pipelines, testified before a congressional committee in December 2012.
Then-congressman Ed Markey of Massachusetts asked Mr Pourbaix: “Would Trans Canada support U.S. legislation requiring Canadian oil and other products such as diesel fuel to be sold in the United States so that this country realizes all of the energy security benefits your company and others have promised?”
Mr. Poubaix's response was, “No I can't do that.”
I suggest the honorable congressman have his staff do more research before he makes any other unsupported claims about lowering gas prices in the United States.
The writer lives in North Myrtle Beach.