Pipeline wouldn’t lower gas prices

I would like to compliment Mr. Silvio Pontarelli on his restraint in not calling the president a liar about the Keystone pipeline (Fence Post, April 6). However, his lack of understanding of the economics of world oil pricing and that of the Keystone pipeline in particular deserves comment.

The purpose of the pipeline, as recorded in the owners’ testimony to the Canadian Parliament, is to transport Canadian oil to the Texas Gulf Coast to be exported to Asia. They were just as open about this purpose in testimony to the U.S. Congress. They have no intention of putting the oil on the U.S. market, so there is no reason to believe that the construction of Keystone will have any positive effect on U.S. gasoline prices or oil supplies. As a matter of fact, some experts contend that Keystone could cause an increase in energy prices in the Upper Midwest by allowing the oil currently sent here to be diverted to more lucrative overseas markets.

The current high price level for U.S. gasoline is dictated by the world price of crude oil, which is currently driven by demand in Asia and tension over the situation in Iran. It is not by the lack of available oil stocks in the U.S. Mr. Pontarelli would do well to bone up on energy economics before accusing the president of intentionally deceiving the public.

Bill Johnston

Arlington Heights