TransCanada, the company building the pipeline, confirmed in an email that the pipeline was designed to reach refineries in the Gulf Coast region.Įxperts also say it’s unlikely that none of the refined products will be sold in the U.S. "It’s true that the oil would come from Canada and then mainly go to the U.S. "I would say it doesn’t accurately describe the likely outcome," said Stanley Reynolds, an environmental economics expert from the University at Arizona. "In general, refineries designed to handle heavier crudes are the ones most likely to utilize this oil, in some cases instead of heavy crudes imported from places like Venezuela." "I don't believe that she is correct," said Mark Bateau, Director of the Energy Institute at the University of Michigan. Gillibrand suggests the crude oil imported through the pipeline would be immediately exported to other countries once it reaches the Gulf Coast. Any impact on prices for refined petroleum products resulting from the approval and construction of the Keystone XL pipeline would be minimal." "The amount of Western Canada Sedimentary Basin (WCSB) crude that makes its way to the Gulf region does not change this dynamic. "As the final Supplemental Environmental Impact Statement makes clear, gas prices throughout the United States are primarily driven by global market factors," a spokesperson said. State Department did not respond to most of Gillibrand’s claim but did comment on how the pipeline could affect gas prices. If the pipeline transfers as much crude oil to the Gulf Coast as the federal government expects, total imports would increase by about 25 percent. The same kind of crude oil comes to the region from Latin America. The Keystone XL pipeline was designed to transport oil to the Gulf Coast because refineries in the region are already equipped to process heavier crude oils, like those found in Canada’s Alberta province. Only 9 percent of the crude oil imported to the Gulf Coast came from Canada. Most of that oil came from Latin America and the Middle East. The Gulf Coast imported more than 3.3 million barrels of crude oil a day in 2016. Companies exported about 280,000 barrels of crude oil every day last year, compared to 4,000 in 2012. The Gulf Coast exports of crude oil - oil that has not been refined into everything from butane to gasoline - spiked during the same time period. That is a marked shift since 2012, when refineries exported about 38 percent of their products. Energy Information Administration report in January. Gulf Coast refineries export about two-thirds of their products, according to a U.S. The oil will then flow through another pipeline to Gulf Coast refineries, where it will be refined into petroleum products like gasoline. The Keystone XL pipeline will transport crude oil from Alberta, Canada to Nebraska. Is Gillibrand right? Will the crude oil that flows through the pipeline immediately leave the U.S.? We checked with a few experts to see if anything has changed. PolitiFact rated a similar claim from then-President Obama Mostly False in 2014. "It’s literally oil from Canada taken through America, so we take all the risks of any kind of spill or any kind of problem, and then it exports it to Mexico and then straight to China or other places," she said. "It doesn’t even have any oil for America to make our gas prices cheaper." Kirsten Gillibrand, D-NY, told the Press-Republican newspaper in Plattsburgh. "I’ve opposed the Keystone strategy for a long time because it is an export strategy," Sen. White House spokesman Robert Gibbs said he did not know whether the fire would affect the moratorium, scheduled to expire November 30.President Trump’s approval of the Keystone XL pipeline brought protests from opponents who say it will not benefit the U.S.Įvery day the equivalent of 830,000 barrels of oil will flow through 1,200 miles of pipeline from Canada to Nebraska. “It’s unlikely to have long-term implications for production in the Gulf of Mexico,” said Raoul LeBlanc, a senior director at PFC Energy in Houston.Įnvironmental groups said the Mariner explosion reinforced the need to keep the moratorium in place. The cause of the fire is still unknown and under investigation, the company said. The crew, plucked from the Gulf by an oil supply vessel, were transported to a hospital onshore and no injuries have been reported, the Houston-based company said.Īutomated shutoff equipment turned off the flow of oil and gas from the platform’s seven producing wells as the crew evacuated, Mariner said. A company spokesman said it started on an upper deck of the platform where living quarters were located, and had not been caused by a “blowout,” or sudden release of oil and gas from a well. The fire burnt for several hours before it was extinguished.
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