We are aware that “fact-checkers” are working overtime to prove that the cancellation of the Keystone XL pipeline by President Joe Biden isn’t the reason for high gas prices. We understand that, “fact-checkers”, as it wasn’t an operational pipeline yet, but could have helped prices in the future.
For that reason, Joe Biden should not have canceled it, not to mention the many jobs that were lost. In our speculation, we also think that market speculators may be partly bidding up oil prices since that cancellation due to future market condition predictions, but we are not market experts and it is our perspective only.
People can invest in crude oil futures for any reason they choose. People can also short sell the crude oil futures if they think they are too high.
The White House cited a possible hit to the economy if gas prices stay high. Yet more jobs from a pipeline would have also helped the economy. A Bloomberg reporter posted the White House letter:
“FULL STATEMENT: The White House urges OPEC+ to pump more oil (above and beyond the current 400,000 b/d monthly hikes the cartel is already implementing)”
“Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery. The price of crude oil has been higher than it was at the end of 2019, before the onset of the pandemic”, begins the letter. Read below:
FULL STATEMENT: The White House urges OPEC+ to pump more oil (above and beyond the current 400,000 b/d monthly hikes the cartel is already implementing) | #OOTT pic.twitter.com/qnWA1l7Pnt
— Javier Blas (@JavierBlas) August 11, 2021
Perhaps the Bided admin will take other measures here at home to help future oil prices, but we will be surprised if they do. We reported in early July that a company that was behind the Keystone XL pipeline is suing the Biden administration for $15 Million, saying in part:
TC Energy Corporation, the company that developed the Keystone XL pipeline announced its intent to filed a legacy NAFTA claim under the United States-Mexico-Canada Agreement, in which they are bidding to recover some of the money in which has been lost for the cancellation of the project. This comes as in January, the Biden administration pulled the permit for the Keystone XL pipeline.
The purpose of this project was to create a pipeline to transport 830,000 barrels of crude a day from Canada’s tar sands to the United States. which has faced opposition from leftist environmentalists. Thousands of jobs in making this pipeline from Canada to Nebraska were lost.
As the pipeline was shut down, it is estimated 60,000 people have lost their jobs, and gas prices have seen a sharp increase since. Many on the right criticized Biden for destroying thousands of jobs in one of his first actions in the White House.
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