The Keystone XL scam: big oil taking over a billion dollars to subsidize pipeline and linked refineries
Sen. Mitch McConnell claimed recently that the Keystone XL Pipeline ‘doesn’t require a penny of our taxpayer money all the president has to do is approve it.’ But our research reveals many places that the pipeline project benefits from many taxpayer subsidies.
The refineries that are linked to the Keystone XL tar sands pipeline as committed shippers will receive between $1 billion and $1.8 billion in tax breaks. They are paid specifically for investing in equipment to process the heavy sour oil the pipeline promises to deliver.
The largest of these refineries, Motiva, is half owned by Saudi Refining Inc., and will receive between $680,000 and $1.1 billion in U.S. taxpayer support.
Saudi, you say? So much for that whole “ethical oil” idiocy.
Keystone XL, like all oil industry projects, is enabled by substantial taxpayer subsidies. Three of the refineries that are planning to process the pipeline’s oil have invested in special equipment to handle the extra heavy tar sands oil. According to our conservative estimates, the U.S. taxpayer is subsidizing these investments to the tune of $1.0-1.8 billion. Here’s how it works.
Now you know why the GOP whines like stuck pigs about subsidies for renewable energy:
Look! Squirrel! Pay no attention to the big oil foreign conglomerates sucking at the government teat, and John Boehner’s substantial investments in said conglomerates!