Wednesday, November 9, 2011

Build Energy Infrastructure?

An interesting post on Econbrowser about the need for the Keystone XL pipeline:

Exhibit A for some energy infrastructure that the nation clearly needs is a better way to transport oil from the increasingly productive fields in North Dakota to the markets where it is most needed. A producer in North Dakota today can sell their oil for $82 a barrel, whereas refiners on the Gulf Coast are paying over $110 to import similar crude from countries like Venezuela, Nigeria, and Iraq. That price differential is an astonishing signal from the market of just how inadequate our energy transportation infrastructure is for the task at hand. Rail is being used to transport the oil as much as possible. But what's really needed is considerably more pipeline capacity.
A "shovel ready" project being blocked by the climate change crowd.

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