The Canadian government and the US government want you to
believe that the construction of the Keystone Pipeline will lead
to cheaper gas prices for middle America. This selling tactic is
based on the principles of supply and demand. If there is more
supply for Americans in the midwest then their gas prices will
decrease. Keystone Pipeline Enables Global Competition for
TransCanada TransCanada, the oil company that wants to build the
Keystone Pipeline from the Alberta Tar Sands oil to the Gulf of
Mexico, can’t really sell to anyone beyond the US. This prevents
them from competing on the global market, which means they have
to offer us dirty oil for cheaper prices. But, what happens when
they do build the Keystone XL Pipeline? The rules of supply and
demand now cause their prices to rise. TransCanada and their
dirty tar sands oil has now hit the global market. They can
raise their prices to match that global market and the supply
that was previously restricted to the US now shrinks. Supply
decreases and demand