Effects of Keystone XL pipeline closure on energy prices - Brownfield Ag News
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Effects of Keystone XL pipeline closure on energy prices

By Filed Under: Ag energy/propane/diesel/fuel, News

An ag economist does NOT believe closing the Keystone XL pipeline will impact energy prices in the short term.  

As one of his first moves, President Biden issued an executive order to block the Keystone XL pipeline that carries crude oil from Canada to the US. Scott Irwin with the University of Illinois says it could be a signal of further regulatory moves to scale back the fracking revolution.

“That could have implications for crude oil and natural gas prices moving forward. So, the pipeline itself I don’t think is going to have a big impact short term, but if we keep moving in that direction, then I think we will start to have some noticeable impacts on energy prices.”

For farmers trying to factor in 2021 fuel prices for the upcoming planting season, Irwin says there are other price drivers, like the recovering economy putting pressure on crude oil supplies.

“That, in combination with OPEC (Organization of the Petroleum Exporting Countries) and Russia’s policies about their production sharing agreements. Those are the two big ones for energy prices.”

Biden says leaving the Keystone XL pipeline in place would not be consistent with his administration’s economic and climate goals.

81 comments
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  • This economist apparently hasn’t noticed the large increase at the pump just recently. Don’t know how he missed it.

    • Gas went up around Christmas time as it always does. Gas prices also increased shortly after Trump took office but I guess your memory isn’t that good

      • Yes, of course. Gas prices will fall very soon now that Christmas is over. Watching and waiting. (thanks Joe)

        • It’s friggen February and the gas prices are still rising, and when trump got in office the prices didn’t go up this much. Open your eyes biden in a demented old, puppet. He SUCKS.

          • if elevated gas prices is the price to pay for a better economy and a better life for natives and their cultures, then that is a price worth paying. Maybe people should stop worrying about paying a little extra for gas and start worrying about the economy and human rights and equality. People like that is what is wrong with the world today, not a “puppet” doing justice.

          • For someone that is all for human rights, you are very rude. “Social justice” is a scam. America’s constitution protects all. Social justice bs is used to shame and blame incoherently to control and turn America away from personal independence and mutual respect. It’s also toward perversion and more reliance on the government. All liberals are just naive fools. Jesus is the answer. John 3:16

          • It is impossible to close an oil pipeline without affecting the cost of oil. Period. Selling off reserves will only reduce the longterm affect. If you want prices to go down do what Trump did. You think Biden would be talking about reopening if this wasn’t true Hahaha

          • Ad hominem attacks = you’ve already lost the argument. Don’t humiliate yourself further. By the way, its now almost Feb 2022 and gas prices are at recent record highs. Haven’t seen them this high since the first Gulf War. So, thanks for voting in the senile old puppet who profiteers from China and Ukraine but cannot be bothered to make sure his own country doesn’t experience record job loss and inflation… and what about that Campaign promise to “get Coronavirus under control”??? Last I checked it’s still killing thousands of people globally, the store shelves are still bare, and all this old idiot can say is “well, nothing can be done. here are some tests and more useless vaccines that barely work”. Great job @$$hat.

          • Yep, Feb 2022 now… Gas prices record high, record high inflation, markets crashing, and this moron cannot do anything about Covid. Thanks for voting in a senile useless puppet. Looks like he is still profiteering from China and Ukraine though! Wooo! Thank Goodness we got rid of corrupt Trump right? Moron…

          • Biden has no control of world wide crude oil prices. The price of crude is high world wide. High demand for oil has increased prices all over the world. How could Biden have any control on this level.

      • It is now November and gas is higher than it has been since Obama. Richeeo, gas prices usually go down in the winter … NOT UP. Winter gas cost less to produce than summer gas. Look it up.

    • Update since your post: NOW e are welll past Xmas. Gas prices nation wide are now higher than any time in Trumps Admin due to the pipe line closure… and it just getting started… You know the BEST way to tax the poor in this country… artificially raise the price of gas. Great work Dems….. great work.

      • Do some research, it has nothing to do with Keystone. 🤦🏼‍♀️

        • The only people saying it has nothing to do with the pipeline are the same people who made the decisions. You believe everything you see in the media, sheep?

        • It appears to be the lack of confidence in the Harris / O’Biden administration.

          • How does something not even built yet affect prices? Maybe it’s the fact that as the vaccine rolls out more people are traveling. Also, the fact that the oil industry lost around 100,000 workers due to layoffs and closures due to the pandemic.

    • I’m sure it’s not NOTHING do to with a global pandemic you mental midget..

      • From Admin: This comment was approved, but with hesitancy because of the name calling. It’s too bad people are incapable of commenting/communicating their side of a story without throwing insults at those with whom they disagree.

  • So i guess the industries that use massive amounts of fuel 1) trucking 2) aviation and farming Not in that order
    Will be delighted to see their costs going up and revenue going down
    Way to go Joe thanks for paving the way the demise of the Democrat party

  • Definitely will impact our economy. Prices at the pump are already rising. Winter months normally see static prices. That is not the case. PA prices already up $.12 per gallon. Next will be fracking. Truckers, aviation, farmers, travel, heating costs will be impacted. We are headed the wrong way with our new President.

  • Strange people are complaining about gas prices already going up, however I have seen a $.10 decrease where I live since the Inauguration. Chill out people, it could very well get worse before good changes happen.

    • Please tell us where you live. I have been nationwide and have seen nothing but increases in fuel prices since Joe Bama was elected.

      • Gas is pa went from 2.39 in dec and Jan. And know we are paying 2.89. Very big jump. Thanks to Biden.

        • How cool is joe now?
          Increase in gas prices leads to increase in all goods. And let’s add the desire to increase minimum wage. The future looks like increase in cost of living. The blue collar worker who did not get a wage increase,( because we worked our ass off to get where we are) is now the new poverty level. Glad I went to higher education. Let’s see how many kids drop out of school because $15.00 is almost as much as teachers, police, firemen and other trained workers make. Really joe and nancy, take those silver spoons out of you butts and think this through. Maybe you have and just don’t care about American people.

      • Same thing here in AZ. As soon as Sleepy Joe stopped the pipeline prices up up up. News blames anyone but Sleepy. If Trump were in office you better believe the media would blame him.

      • Yeah, it couldn’t possibly have anything to do with arctic blast in the south, the fact that Covid numbers are going down and more people on the roads again, spring break, supply and demand, etc. So many factors in the price of gas it’s dizzying but yeah, keep pedaling your pathetic hate. Do a little research for FFS.

        • Gas prices was on the rise well before spring break, I mean it’s still not even spring yet so why mention that one… America was finally on the right track to become energy/oil independent. But that has stopped dead… don’t even get me started on the cost of insulin! Trump had insulin down to a affordable rate… why would Biden sign an EO to cancel that deal??? He wants Obamacare to be the savior to all! Obamacare fines ppl for being poor and forces insurance on people, that would not be a bad thing except they didn’t put caps and restrictions on insurance co to limit the amounts they can charge and didn’t include the promised deleting/removing coverages. Now thanks to Obamacare insurance no longer covers anything until a HUGE deductible is met along you’re paying ungodly premiums

          • Obama made people, hey earning over $100,000 a year for health insurance these people were so greedy that they wouldn’t even pay to have health insurance for their family and the taxpayers were paying for it. You keep talking about socialism on here how about talking about Communists on here. When you have one person that wants to head the country continuously and then refuses to acknowledge the incoming president any hold so many people under his command. That’s how Hitler started so I guess you want to be a Communist dictatorship. The USA. Did you ever think that maybe the rich like the oil Mongols? Want to keep the price is high. Did anyone ever stop to think that maybe the people that worked on the pipeline can be trained to work on clean energy? We have the fun we have the wind and we have the water. And one person was trying to make gasoline out of corn. This is what we did for our future for great-grandchildren and their children. Stop thinking about yourself. I know since the sixties everybody has been me me me person. I think you brought your children up the same way. I won’t say any more at this time but I have a lot more to say.

    • Ya I would love to know where you live??? Just gassed up here in wa??? 3.07😡😡😡😡 thanks joe!!! Oh and our wonderful governor hasn’t even got his .30 gas tax he wants yet😡

    • Sooo you’re telling me gas needed to go up 60 cents in order for gas to go down? Even though gas was already at record low compared to what we saw for YEARS?

      So we have to deal with terrible shit for hope of something MAYBE getting better? Is that what you keep telling yourself to make yourself feel better about the fact that america is FUCKED now that Biden and Harris are in office? 🤡

  • I live in FL and gas has gone from $1.97 per gallon in December to today it is $2.45

    • I’ve looked into the Floridian gas prices. Looks as if last December they were $2.45 as well. And fluctuated up and down all year.

    • Where do you live in Fl that the gas prices were at$1.97? I also live in Fl. And our prices haven’t been that low since President Obama!! In Sarasota it has went up $.07 which is typical.

      • I live in Vero Beach, FL and our gas prices was $1.99 right before Christmas. Now it is $2.59..

        • I live in Tallahassee gas was 1.97 here as well at Christmas and now 2.45. I hope it gets better i was a Trump supporter but he is out so now i have to hope and pray President Biden gets it right. First and for most american who ever is in the White house is my president so lets go Biden get this undercontrol

          • Same here in St Pete FL – $1.99 around the holidays and now $2.65. Hold onto your wallets, this is just the start of the Biden White House.

          • how you feeling about Biden now? How bout those gas prices, Afghanistan fiasco, Russia invading Ukraine, mandating an experimental Mrna jab that has awful side effects and doesn’t prevent infection, mask mandates for everyone, designating parents as domesticate terrorists, I’m sure I missed some. Lets not even talk about the irregularities still being discovered in swing states in the last election. because that will get you banished from all social media. And still I’m missing some. and its only been a year. wonder what else Sleepy Joe will muck up in the next 3 years.

          • how you feeling about Biden now? How bout those gas prices, Afghanistan fiasco, Russia invading Ukraine, mandating an experimental Mrna jab that has awful side effects and doesn’t prevent infection, mask mandates for everyone, designating parents as domesticate terrorists, I’m sure I missed some. Lets not even talk about the irregularities still being discovered in swing states in the last election. because that will get you banished from all social media,. and its only been a year. wonder what else Sleepy Joe will muck up in the next 3 years.

  • The question unanswered is whether or not the closing of the XL pipeline will make us less energy independent? If the answer is “yes”, then one would assume that the Russian and OPEC policies would affect prices at the pump more than they otherwise would. Of course, we’re not including the issues of all the related jobs that will be lost, and what one could argue was bad timing for making this move..

    • Considering the pipeline comes from Canada, using their oil, and owned and operated by their government with plans to sell more of the product to the overseas market.. I think you might be confused on the definition of “Energy dependent”. Just saying.

  • I am not sure where anyone out there is getting their facts, but the Keystone XL pipeline is not in operation. Going from permitted to not-permitted status doesn’t change the price of oil in any meaningful way. Oil went to multi-decade lows because people stopped using it (mostly airlines but also commuters, cruise lines, and so on); the price will go back up to where it was in 2019 when global demand re-stabilizes and those people who are actually SELLING oil — not Canadian oil sands folks who HOPE to sell MORE oil — will adjust their supply to meet demand and increase prices. There is already a Keystone pipeline that is shipping tar sands crude to Texas for refining; the XL is a shortcut and capacity increase. But with global demand low for oil products, having another pipeline on or off the permit table doesn’t change the price of anything. Sorry to burst the bubble of those of you who want to blame any change in the price of oil on the current administration, but it’s not relevant–as the first paragraph of the story says.

    • It’s quite relevant considering it was (is) the plandemic wrecking economy, prices and we all know the Dems won’t let a good crisis go to waste. Wrecked economy, wrecked election, wreck of a president sitting in our WH today.

    • That’s funny all last year no one was driving or flying. And gas was much much cheaper. All of a sudden the pipeline is stopped and gas goes up 60 cents in a month in my state. I can blame Biden.

      • gas was cheaper BECAUSE NO ONE WAS DRIVING……that came straight from you! Don’t be an idiot. Gas prices are up because of supply and demand with people going back to work and starting to travel. The pipeline has NOTHING to do with it. Please stop proving rumors true that “trump followers are uneducated”. Google is free…..do some research before you start running your mouth!

  • In addition to what the REAL reason is for fluctuating gas prices.
    The pipeline is NOT detined to remain in this country any way. It is for CANADAS Oil barons and will be sold on the open market, which usually means Europe and other places, NOT the US.
    Oil barons and desire for more profit by the major Oil companies is why prices go up. It has absolutely NOTHING to do with President Bidon canceling permits on an unfinished pipeline.

  • Short memories for sure … do some research on gas prices during the last year’s of the Bush Administration…..$4.00+ but that didn’t seem to bother you Republicans.

  • Agree no pipeline affects pricing. We warned gas prices would rise with Biden. And saying it’s the price to make things better for everyone is bs. 390 million gallons a day . That 390 million bucks a day! From Obama prices to Trump. And gas here election day
    $1.51, inauguration day $1.94. today $2.29

  • Agree closing pipeline affects future pricing. Gas here election day 1.51, inauguration day 1.94, today 2.29. And it is a big deal. 390 million gallons a day sold. Difference between Obama and Trump $1.03. that’s 400 million $ a a day!

  • Big oil, pharmaceutical, insurance
    Unholy Trinity of America

    • Just a comment to those in the forum who served in the US military. I’m old, pilot in both Navy and Delta, and have seen the price of fuel all over the page throughout the years; nothing new. What is more important to me is the change of policy, only for political reasons. Our allies count on stable policies for both economic, and military security. Remember the lousy COs who changed policy as soon as they took command; just to display authority? Also keep in mind that we all took an oath to protect and defend the Constitution against all enemies, both foreign and domestic. The first three things that all Kings, Dictators, or socialist/Communist Presidents do is take away the people’s freedoms, weapons, and destroy history to dummy down future generations, by creating their own false history. Watch for these signs, and remain vigilant.

  • Unbelievable! People cant figure out that oil “futures” have an affect on the price of gas today. If it’s determined that the price p/barrel will be more next heating season than it is today, the companies will order it today in order to lock in the price. As they order more and more they drive the price up (just like stocks) and the refineries pass it on to consumers. Should have kept the Keystone going. Biden is relying on windmills.
    What an old fool.

  • It is funny watching you guys all argue on both sides… The fact is that canceling the pipeline will not prevent or reduce emissions. On the contrary, they will actually make them worse. The oil and gas will still be extracted, but instead of going down a pipe it will now be put on a ship or a truck, burning even more fossil fuels and transporting the product in a more dangerous manner. This will also result in much higher fuel and energy prices.

  • I choose to use my common sense on the diesel and gas price increases. Under President Trump the USA was working hard to be energy independent. Yes the Canada Keystone pipeline was functioning and delivering crude oil to the US to our refineries. Very efficient and created 1,000’s of good paying jobs and job related business also flourished. Our crude oil demand has not changed and we now have to purchase crude oil from others that have a strong hate for our country. Now for the common sense. It cost more to ship crude oil in tankers and either truck or rail to the refineries and much more hazardous along with more energy. That is why i have seen a .$.70/gallon increase in 87 gas and diesel fuel. President Biden has no clue how to mange himself much less our country. All decisions are being made to payback those who poured millions of $ to elect MR Biden. If we keep going down this path the America I love will be no more. The liberal left democrat’s want the USA cancelled.

  • Today, 3/15/21….$3.09/Gal; give me a break. Be realistic gas, taxes, immigration..all going to hell, and that’s only the beginning.

  • The Biden administration can release or not release oil from US strategic oil reserve by executive order. The decision to release or not release and the amount to release or not release could be determined by chance. The dates that release/no release decisions are made can also be made by chance. With so much unpredictability in the US oil market, the futures traders (speculators) that are driving up the oil prices would be facing a new playing field. Another way to control speculators is to amend the US tax code on short term capital gains to a variable tax rate based on the length of time an investment is held with extremely high tax rates on investments like 28 day futures contracts while rewarding investors that make long term investments for the national good with bargain long term capital gain taxes .I don’t see why Democrats don’t use the tax code to temper greed in this country that is hurting so many of us.

  • The sole purpose of the XL Pipeline is to get oil OUT of the US and onto the global market, not into the US market. Thus avoiding having to pay taxes like existing Canadian Pipelines that pump to the US Midwest. Thus says the Canadian Energy Head.

  • Lessening the supply because of purposeful actions that have no bearing from common sense and good judgement, only hatred, is going to have an impact on the market….. and it has, and it will continue as long as that supply source has been messed with for no good reason. Bring the market supply back and prices will drop; that is the case now, and it always has been…… just become acquainted with economics 101, for starters and you will get 90% of the logic here.

  • Anyone claiming that the cancellation of XL would lead to higher domestic gas prices doesn’t understand that the purpose of building the pipeline was to move Canadian oil to the gulf for export.

  • Nancy Pelosi was worth up to 20,000,000.00 in 2008. In 2012 it was up to 60,000,000.00. In 2016 it was up to 120,000,000.00. Today it is up to 312,000,000.00.
    Going green makes certain lawmakers alot of $!
    Higher prices for the “common” man doesn”t concern them.
    Clearly prices have risen across the board. I’ve been paying 1.10 per gallon more since June. A loaf of bread, a gallon of milk, a dozen eggs, all cost more.
    The United States, especially California(born and raised there) wants to save the world from climate change. Yet the USA is only 4.5% of the worlds population.
    Still we’re marching ahead to lead the world in innovations. It appears also that there is an outright attempt from one side of our government to end what they call “American exceptionalism”. Biden speaks of more than one World Super Power.
    There can only be one number one and the USA is number one. People don’t get how bad China or Russia would like to be number one. Biden has lifted both their economies so far this year.
    We arrest people inside the capitol building protesting the 2020 election, without bail, yet our vice president who won’t go to the border she’s been put in charge of but she can address the crowd that knocked down statues as they descended on the white house demanding Biden meet their Green demands.
    Whether he was elected fairly or not, there are some very toxic people wirh toxic agendas that are not for the USA’s greater good.
    Money and power corrupt. It’s like Lincoln said way bac in 1874 “Corporations have been enthroned and the money power will seek to stay enthroned by working upon the prejudices of the until all the money and power are in the hands of a few and the republic is destroyed”.
    Take a look at who is making money and all the different media/news networks they OWN and all the differnt ways they “contribute” or don’t “contribute”.
    If they all are so worried about being philanthrapists why don’t they just give a million to each of the 7.? billion people in the world? It’s just a drop in their bucket of trillions!

  • I don’t think any of these economists have a clue. The prices went up immediately after the pipeline was shutdown and have continued to rise for 10 months. Summer is over. Cold temperatures are gone. Every reason they have for the prices going up are nowhere to be found today. They were strictly guessing (like covid geniuses) and guessed wrong. Again….

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