How The Keystone Pipeline Will Impact the EconomyAugust 5, 2013
TransCanada is proposing a multi-billion dollar project called The Keystone XL Pipeline (Phases 3 and 4), which is part of the existing Keystone Pipeline (Phases 1 and 2). This major pipeline will have significant and far reaching, short and long term effects on the US economy. In this article we will examine some of the main economic points regarding the pipeline.
The Scope of the Keystone ProjectThe original Keystone Pipeline project, which consisted of the now operational phases 1 and 2, cost approximately $5.2 billion to complete. The proposed Keystone XL expansion which include phases 3 and 4, are estimated to cost approximately $7 billion. This makes the Keystone Pipeline an extremely large, expensive undertaking with a massive potential for economic stimulation. In addition to the high dollar cost associated with the Keystone Pipeline, TransCanada, the company has the potential to bring huge revenue to multiple states through the country. TransCanada has contracts with more than 50 different supplier across 18 states. Thus, the pipeline affects communities and its people, all throughout the country. The most staggering figure of all, however, is $20 billion. This is the total overall economic impact that TransCanada has estimated that the Keystone Pipeline will have in the United States. This would include many different sources over a long period of time, which will seriously impact the direction of the US economy.
The Keystone Will Create JobsOne of the most important ways in which the Keystone Pipeline will impact the economy is through job creation. This is both in terms of the construction and maintenance of the pipeline itself as well as the associated companies and businesses which will need to hire new employees in order to keep pace with the development the pipeline causes. Considering that unemployment is one of the fundamental measures of the economy this is an incredibly important factor. Estimates on the number of jobs that will be created by the Keystone Pipeline vary dramatically from source to source and are hotly contested. Further adding to potential confusion is the fact that some estimates are related only to specific industries while others take all sectors into account. Additionally, some numbers are based on a specific timeline. However, here are a few very important statistics: TransCanada estimates that the pipeline will create:
- 15,000 new construction and manufacturing jobs.
- 9,000 American jobs to build the Keystone XL Pipeline.
- 7,000 American jobs to manufacture the steel pipe needed to build the pipeline.