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Originally Posted by wookster
Thats because environmental impacts are all they have to go on...I don't see how there can be any economic implications about going ahead with the Keystone project. it would not raise gasoline prices for Canadians at all, in fact it would help keep them in check by raising the supply of oil to refineries. Oil is a global commodity based on supply and demand, not so much regional. The bigger the supply in correlation to the demand, the cheaper the price, so I'm not sure how oil companies will be able to sell at a higher price because of this? If anything, prices should get slightly lower.
Make no mistake, oil companies here will still make their money but so will the governments...and that means more money for infrastructure, health care etc. for everyone. And I also think that the environment is important as well and everyone should be held accountable to helping to maintain and better it.
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I find it difficult to believe that oil companies are lobbying so hard for a project that would drive down the price of their product. I can't remember an oil company, or any company for that matter, ever doing such a thing. The fact is that most Alberta oil from the oil sands is sent to the midwest refineries which are generally overstocked which in turn, reduces the price that suppliers get for their product. The thinking behind this project is that they will be able to send the product to a different market where they will be able to get higher prices. Generally, increases in commodity prices are passed on to the consumer. I find it a real stretch to think that this project will in any way, be a benefit for the average consumer.
Additionally, I don't think that any of the price per barrel increase would affect the slim amount of royalites that are paid by the companies anyway. Are royalties not set based on the amount of barrels, not the price per barrel? So to suggest that this project will increase the amount of royalties that the governement collects is incorrect. Hence, no 'more' money for infrastructure, healthcare, etc.
This project will create a few temporary jobs and will make the oil companies richer in the short and long term, I still fail to see where the great benefits to the general population will come in.