By a News Reporter-Staff News Editor at Energy Weekly News -- Investigators publish new report on Energy Research . According to news reporting out of Ann Arbor, Michigan , by VerticalNews editors, research stated, "Beginning in early 2011, crude oil production in the U.S. Midwest and Canada surpassed the pipeline capacity to transport it to the Gulf Coast where it could access the world oil market." Our news journalists obtained a quote from the research from the University of Michigan , "As a result, the U.S. 'benchmark' crude oil price in Cushing, Oklahoma , declined substantially relative to internationally traded oil. In this paper, we study how this development affected prices for refined products, focusing on the markets for motor gasoline and diesel. We find that the relative decrease in Midwest crude oil prices did not pass through to wholesale gasoline and diesel prices. This result is consistent with evidence that the marginal gallon of fuel in the Midwest is still imported from coastal locations." According to the news editors, the research concluded: "Our findings imply that investments in new pipeline infrastructure between the Midwest and the Gulf Coast , such as the southern segment of the controversial Keystone XL pipeline, will not raise gasoline prices in the Midwest." For more information on this research see: The Incidence of an Oil Glut: Who Benefits from Cheap Crude Oil in the Midwest? Energy Journal , 2013;35(1):15-33. Energy Journal can be contacted at: Int Assoc Energy Economics, 28790 Chagrin Blvd , Ste 210, Cleveland, OH 44122, USA . Our news journalists report that additional information may be obtained by contacting S. Borenstein, University of Michigan , Dept. of Econ , Ann Arbor, MI 48109, United States . Keywords for this news article include: Michigan , Ann Arbor , United States , Energy Research , North and Central America Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC
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