Keystone XL May Raise Gas Prices 10 to 20 Cents Per Gallon In USQuicklink submitted By Amanda Lang Permalink
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|Philip Verleger, principal of PK Verleger LLC. said "the Canadian plan was to use their market power to raise prices in the United States and get more money from consumers."
The purpose of the $7.6 billion Keystone is to move 830,000 barrels of oil a day from landlocked Alberta to the Texas Gulf Coast, obtaining new customers and a higher price for heavy Canadian crude, Canadian regulators said in a 2010 report. The oil sold for $23.38 less per barrel in 2011 compared with heavy grades of Mexican crude, according to data compiled by Bloomberg.
"The Canadian plan was to use their market power to raise prices in the United States (UNG) and get more money from consumers," Philip Verleger, founder of Colorado-based energy consulting firm PK Verleger LLC, said in an interview. Prices may gain 10 to 20 cents in central states, he said.