Economic Impact

Kinder Morgan Palmetto Pipeline Means Higher Gas Prices & Job Loss for Georgians

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No Public Convenience & Necessity

Kinder Morgan and Georgia State Government are MISLEADING Georgia Citizens in regards to Coastal Georgia’s Petroleum Demand:
Gasoline and diesel demand are declining in Georgia and Florida. According to the US Energy Information Administration, Georgia’s petroleum demand peaked in 2005 and has declined 18% through 2012.

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Coastal Georgia Jobs Lost

Kinder Morgan and Georgia State Government are MISLEADING Georgia Citizens regarding jobs:
Kinder Morgan and Georgia State Government say the Palmetto Pipeline will create 28 permanent jobs in Georgia.

What they don’t tell you is that 250+ Coastal Georgia jobs will be lost. Truckers, port workers, U.S. Merchant Marines, as well as all their local suppliers will be at risk.

Competition = Higher-Quality Product at Lower Price

Current Tariff Structure – Multiple Suppliers = Consumer Advantage:
Today, there are more than two dozen suppliers of fuel that compete for Coastal Georgia’s fuel supply via pipelines and ocean transport. Normally, on other pipelines, including the ones currently supplying 75% of Savannah’s demand, every shipper pays the same transportation cost regardless of volume. This pricing structure is important because it allows independent suppliers and marketers to supply fuel on a level playing field with major refineries and oil companies.

No Competition = Lower-Quality Product at Higher Price

Kinder Morgan Tariff Structure – Big Oil Monopoly = Consumer Disadvantage:
The Palmetto Pipeline is different because the tariff is structured into tiers based upon volume. This structure could be used to advantage big oil refineries over smaller independent shippers and marketers. Depending on the size of the advantage, big oil companies could gain monopolistic control over prices into Savannah and other markets.

Exxon and Marathon Oil would control the entire supply chain from start to finish. Exxon and Marathon control key refineries at the beginning of the supply chain in Louisiana. They share a huge distribution terminal in Jacksonville, where it will end. The Palmetto Pipeline gives them control of everything in between.

Kinder Morgan & Georgia State Government’s Fishy Math

Kinder Morgan and Georgia State Government are MISLEADING Georgia Citizens about estimated annual revenue to state and local taxing bodies:
Kinder Morgan has not disclosed how they calculate their $14 million number, including whether the $14 million is net of any decreased revenues from reduced property values, higher fuel prices and lost jobs.

Economic Impact

  • Higher Prices at the Pump
  • Big Oil Monopoly
  • No Independent Suppliers
  • 250+ Jobs Lost
  • Private Property Taken
  • No Transparency


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