It’s an article of faith among supporters of the proposed Keystone XL pipeline: approving the project would allow the U.S. to use more crude from Canada and less from Venezuela and other unfriendly regimes.
The reality, according to analysts and others who watch global energy trends, is more complex. U.S. imports of crude from Venezuela have been falling for decades, though TransCanada Corp. (TRP)’s proposed pipeline may hasten the trend.
Moreover, the refineries in Texas and Louisiana that would process Keystone’s oil have expanded their capacity and may simply absorb the additional stock to feed markets here and abroad for fuel, especially diesel that is in high demand in Brazil and other Latin American countries.
Read full article…