Myth vs. Fact: Stopping Keystone XL

MYTH: Stopping the construction of the Keystone XL will help end the development of the oil sands.

FACT: Development of the Canadian oil sands is projected to increase regardless of the delay in the Keystone XL project due to other pipeline options and other transportation options (e.g. rail). The Canadian Association of Petroleum Producers (CAPP) predicts that the oil sands will experience significant growth over the next decade and beyond, from 1.5 million barrels per day (bpd) in 2010 to 3.7 million bpd in 2025.[1] According to IHS CERA, the U.S. is slated to significantly benefit from this development, potentially increasing imports of Canadian oil to account for as much as 36 percent of total U.S. oil imports by 2030.[2] Canadians are exploring options to shift supplies westward to China’s growing energy market as well. Since 2010, Chinese companies have invested more than $17 billion in oil and gas deals in the U.S. and Canada to help satisfy their energy demand.[3]

Stopping Keystone XL will not provide environmental benefits that opponents claim. It will only reduce the country’s flexibility in meeting energy demands.

[1] CAPP, Crude Oil Forecast, Markets & Pipelines, June 2011

[2] IHS CERA, The Role of Canadian Oil Sands in US Oil Supply, May 2010

[3] Wall Street Journal, “China Foothold in U.S. Energy,” 6 March 2012

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