The construction of the Keystone XL Pipeline will provide significant economic benefits to American workers and American energy consumers across the United States. Despite the enormous impact the pipeline will have for our nation’s energy security, the Obama Administration had refused to green-light construction until after this year’s presidential election. After years of environmental review and the recent months of high-stake politicking, Congress determined it was time for the President to make a decision.

Unfortunately, President Obama has decided to put the agenda of opposition groups before America's economy and energy security. Now it's up to us to make our voices heard and make sure the president reverses course and approves the Keystone XL Pipeline, as well as the jobs, investment and energy security that come with it.

Why Keystone XL is Important

TransCanada Keystone Pipeline, L.P has proposed to construct a 1,700 mile crude oil pipeline that would extend from Hardisty, Alberta to terminals along the Texas Gulf Coast. Named the Keystone XL Pipeline, this infrastructure will carry 700,000 barrels of North American crude to U.S. refineries every day – helping to displace nearly half of the oil these refineries currently import from Venezuela and the Middle East and boosting our nation’s energy and economic security in the process.

The Keystone XL Pipeline is a “shovel-ready” project that would directly create over 20,000 high-wage manufacturing and construction jobs in the United States, particularly in the corridor states of Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas.
From personal income taxes to property taxes, this $7 billion project is expected to contribute over $20 billion to the U.S. economy. Of this, $5.2 billion will go directly to the corridor states in property taxes.

Access to reliable, affordable supplies of energy remains one of the most essential components of a growing economy. In 2010, Americans consumed 19.1 million barrels of oil a day—nearly half of that oil (9.4 million barrels a day) had to be imported at a cost of over $270 billion.

While much of the oil we import comes from Canada and other Western Hemisphere neighbors, the United States continues to import nearly one-fifth of our oil from the Persian Gulf. As witnessed throughout 2011, instability in key oil-producing countries causes great volatility in oil markets, increasing the price that consumers pay at the pump and undermining U.S. energy security.

Millions of American consumers and businesses depend on the abundant, secure supplies of energy that the Keystone XL Project will deliver. From manufacturers to farmers and small businesses, American jobs rely on stable sources of energy to transport their goods and services, power their facilities, and manufacture their products. Notwithstanding efforts to conserve energy and increase fuel efficiency standards, Americans will continue to consume over 19 million barrels of oil a day for the foreseeable future.

 

Why the Fuss?

Because this project crosses an international border, the U.S. Department of State must review the environmental impact of the pipeline and seek input from the public before deciding whether to grant a permit for its construction. Over the past three-plus years, the State Department, in consultation with several other federal, state and local authorities, has analyzed the potential impact this infrastructure may have on the surrounding environmental. Ultimately, the study concluded that “no significant environmental concerns exists” that should prohibit the pipeline from construction or operation.

Although the State Department concluded the route environmentally safe, in November 2011 the State of Nebraska, TransCanada and the State Department agreed to alter the route of the pipeline to avoid some potentially sensitive areas of the Nebraska Sandhills. TransCanada will determine the new route in the near future and will then work with the Nebraska Department of Environmental Quality and the U.S. State Department to examine the route change for environmental impact. In January 2012, President Obama rejected the permit but allowed TransCanada to reapply after the Nebraska route change is complete.  Once the operator and the authorities determine a new route, Keystone XL will have to go through the permitting process, again.  Although the project has been under review since 2008, President Obama’s decision will delay the realization of this important project for years more.

Notwithstanding the extensive environmental review and the route change, opposition groups continue to oppose the pipeline, but for reasons having little to do with the actual infrastructure. Rather, they oppose the pipeline as a means to oppose the development of the Canadian oil sands, a multi-billion barrel reserve of crude oil that represents trillions of dollars in economic potential. Killing the pipeline won’t kill the development of oil sands. The global thirst for oil will likely not abate anytime soon, and Canada will sell its oil to other markets if the United States declines. The tough truth is that, if the United States refuses to build Keystone XL and import Canadian oil, the Canadians will sell it to markets much farther away, which will ultimately cost more money, more energy and more GHG emissions to transport those supplies.

In reality, the sad truth is that, since President Obama denied the permit, millions of American consumers and thousands of construction workers will fail to benefit from the new jobs, revenue and energy security that this pipeline will confer.