22 March 2012 04:33 [Source: ICIS news]
SINGAPORE (ICIS)--The American Fuel & Petrochemical Manufacturers (AFPM) trade association late on Wednesday urged US President Barack Obama to approve the entire Keystone XL pipeline to boost domestic oil supplies amid high fuel prices.
“Construction of a portion of the Keystone XL pipeline from Cushing, Oklahoma to Gulf Coast refineries is needed to speed the movement of oil already in the United States and relieve a bottleneck in Cushing,” AFPM president Charles Drevna said in a statement.
“[However, this] will do absolutely nothing to give American consumers access to a vital and reliable supply of nearly 1m barrels of oil a day from North Dakota, Montana and our good friend and neighbour Canada,” Drevna said.
Drevna was responding to a statement by Obama that calls for the expedited construction of the southern portion of the Keystone XL pipeline from Cushing in Oklahoma to Port Arthur in Texas.
The surplus at the Cushing oil hub has been growing because of a lack of pipelines to move growing crude supplies from the country’s midwest and Canada to refineries in the US Gulf Coast.
“After more than three years of waging war on fossil fuels, it's long past time for President Obama to declare a cease-fire and approve construction of the entire Keystone XL pipeline to serve American consumers,” Drevna said.
“The best way to put downward pressure on oil prices is to increase the oil supply in the United States by producing more oil in our own country and by bringing more oil to US refineries from Canada, North Dakota and Montana,” he said.
This will make the US less reliant on “unstable regions” of the world for its oil needs, Drevna added.
The US-only segment of the pipeline is seen as “game changer for US-Canada economic relations”, the Canadian American Business Council said late on Wednesday.
“Creating a reliable and, most of all, secure, source of energy that is truly North American is something that will help stimulate recovery on both sides of the border,” the council said in a statement.
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