The Keystone Clock is Ticking While Gas Prices Continue to Rise

January 11, 2012

WASHINGTON, DC - It has now been 19 days since President Obama signed a bill requiring that he approve the Keystone XL pipeline unless he determines it would not serve the national interest. While the president continues to delay the pipeline, thousands of American jobs hang in the balance. But this shovel-ready project is not just a way to create American jobs - it's also a way to improve American energy security and stability at a time when world events are contributing to rising gasoline prices higher. During a time of record unemployment, high gas prices can be especially detrimental to American families who are struggling just to pay their bills. The Keystone XL pipeline gives America the unique opportunity to address these concerns by increasing access to North American oil supplies and advancing our energy security, but the president is still standing in the way. With gas prices climbing and millions of Americans still out of a job, how much longer will we have to wait?

Drivers saw sky-high gas prices last spring, and projections show this year's averages could be even worse. Today's average price for a gallon of regular gasoline stands at $3.37, up already 8 cents from just a week. When President Obama took office the price was just $1.84. Even the smallest increase in gasoline prices can put stress on our economy. For every penny the price of gasoline increases, it costs consumers an additional $4 million per day - that's equal to $1.4 billion over an entire year.


Source: EIA, http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m

The recent spike in price is linked to political tensions in the Middle East, which threaten to disrupt the world's supply of oil. Iran's recent threat to close the Strait of Hormuz shows just how susceptible oil prices are to these unstable regimes. The Keystone XL pipeline has the potential to change this dynamic by bringing more secure oil to the U.S. The pipeline will bring nearly a million additional barrels of oil per day to U.S. markets, helping to restore market confidence and bring down prices at the pump. Stable oil prices, like those the Keystone XL would deliver, would be a major boom to our economy.

"Construction of the Keystone XL pipeline will guarantee America has a secure energy source despite attempts to cut off supplies by hostile nations. The influx of Canadian oil supplies from the pipeline will help displace overseas imports from the Middle East and elsewhere," said Energy and Commerce Committee Chairman Fred Upton (R-MI). "The more we rely on oil imports from these unstable regions, the more vulnerable we remain. President Obama has placed aircraft carrier strike groups in the Persian Gulf to defend the free flow of oil half a world a way, yet he refuses to simply say "˜yes' and allow us to access this vital resource from our closet neighbor and ally."

 

Gas Prices In the News

ABC NEWS: Gas Prices Continue to Rise
Gas prices are continuing to move upward with a gallon of regular at $3.38, up 8 cents from a week ago, the Energy Department's U.S. Energy Information Administration said today.
The weekly national average increased almost 30 cents from a year ago, and rose for the third consecutive week, adding to predictions that 2012 might be an uncomfortably expensive year for drivers across the country.

BLOOMBERG BUSINESSWEEK: AAA Mich.: Gas Prices Up 9 Cents in Past Week
AAA Michigan says gasoline prices are up about 9 cents per gallon during the past week to a statewide average of $3.51. The auto club said Monday that the average is 35 cents per gallon higher than last year at this time.

LOS ANGELES TIMES: Gasoline Prices Climb in California, Nationwide
Retail gasoline prices jumped higher over the last week in California and most of the nation, adding to what was already a record start for a new year. The average price of a gallon of regular gasoline in California rose 7.2 cents to $3.707, shattering the old record for this time of year: $3.332 a gallon, set last year, according to the Energy Department's weekly survey of filling stations.

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