Pipeline would lower oil prices

The April 18 letter “Why so shocked by capitalism?” states that if the Keystone XL pipeline had been completed, it would make no difference because it is just a transport means, not a source of new oil, and the oil it would carry is already arriving by other means.

It is true that oil is arriving by truck and train, but Canada has production available that could allow it to continue that delivery plus an additional 800,000 gallons per day in the pipeline.

Furthermore since pipelines are the cheapest, safest and least energy-using means of transport, the additional oil could be delivered at lower cost to the consumer.

The April 18 letter further states that 8,000 oil and gas leases have been drilled but not completed and that up to 500 wells have been completed and capped “to artificially inflate the price of product.”

But all new oil leases require exploration and exploratory wells. Many of the leases drilled and not completed likely are dry or do not have commercial quantities at even today’s high prices.

Most of the leases that have commercial quantities of oil or gas are awaiting government permits and environmental studies to build the infrastructure to get the product across government lands to refineries. Restarting the Keystone XL pipeline and allowing all infrastructure to deliver product from existing leases with no further delays would result in a significant drop in oil prices.