CLICK HERE FOR A GRAPHIC OF HOW U.S. PRICES COMPARE TO COSTS OF OIL FROM CARIBBEAN – http://t.co/DlYJhlLnBW — TC Energy (@TCEnergyco) March 22, 2020
The U.S. Department of Energy announced Friday morning that it will pursue a refund for Canadian petroleum companies to recoup the costs related to the Keystone XL pipeline.
Currently, the price difference between crude oil from the U.S. and Canadian projects is $3.45.
But the price difference between the U.S. and Canadian oil isn’t supposed to be much higher.
The price differential between the two countries is 3.5 cents on average.
“TransCanada agreed to buy and deliver crude oil on this project at a value that is lower than the value of the crude oil it could have purchased for its facilities in Canada,” the agency said in its release.
“We don’t know how many millions of dollars TransCanada is likely to owe in the lease termination fee.”
So is it coming from taxpayers?
No. That’s what the Energy Department says.
“The lease cancellation is not funded by taxpayer dollars,” an Energy Department spokesperson said in a statement.