Daily Progress, Jacksonville, TX

Letters to the Editor

April 28, 2011

Pipeline only benefits Canadian oil company

JACKSONVILLE — A TranCanada executive is quoted as saying that I lied when in the same article I was quoted as saying that some economists worry that building the Keystone XL pipeline could precipitate a rise in the cost of gas and food. (4/21/2011)

My statement is based on reliable sources, only two of which are cited here because space is limited:

US Senator Ron Wyden's Letter Of  4/6/2011 asking the Federal Trade Commi-ssion to investigate "...the proposed Keystone XL pipeline and related agreements." for possible violation Of U.S. Antitrust Laws:

     "...According to TransCanada, the proposed Keystone XL pipeline can be used by Canadian oil shippers to add up to $4 billion to U.S. fuel costs...

     "It is...critical to determine whether the increased prices expected to be incurred by U.S. consumers and the potential for significant redistribution of crude oil supplies now destine to US refineries due to the proposed construction of this pipeline is the result of anti-competitive practices that violate U.S. laws through agreements among the proposed shippers..."

In his StarTribune (Minnesota) Op-Ed piece of 3/13/2011 entitled 'If Gas Prices Go Up, Blame Canada," noted oil market economist Philip K. Verleger unequivocally states that the Canadian oil industry intends to use the Keystone XL to manipulate the U.S. oil market. "American consumers will pay the price of this highway robbery. Food prices will rise because they reflect farm operating costs. In addition, millions of Americans will  spend l0 to 20 centers more per gallon for gasoline and diesel fuel...

Dr. Verleger added that "The Keystone pipeline will move production from Canadian oil sands to a deepwater port from where it can be exported." Senator Wyden expressed concern about that when he observed that foreign firms, including the Chinese government's oil company, had made substantial investments in the tar sands production.

It seems increasingly that the Keystone XL pipeline is for the sole benefit of the Canadian oil industry and it foreign investors. Why, then are a Democratic Administra-tion and our Republic representatives, Hensarling, Hutchison, and Cornyn, united in backing this project, which puts our nation's environment, public health, and citizens' property rights in Jeo-pardy? And, is Trans-Canada receiving a tax abatement for building the Keystone XL.

Mary C. Decker,

Jacksonville

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