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Keystone Pipeline is a system of pipeline running from western Canadian Sedimentary basin to the various refineries in the United States. This pipeline conveys synthetic crude oil, diluted bitumen (from oil sands) and also light crude. This pipeline system is already operational with three phases of them working without a hitch and the fourth one on the design table.
The fourth phase of the pipeline is referred to as the Keystone XL (eXport Limited). This phase is awaiting clearance from the US government and is unfortunately seethed in unnecessary controversies. This system of pipelines has been operational since the 2010 and is running smoothly without any hitch or accident.
The Keystone XL pipeline is touted to be one among the safest pipeline systems in the world. This pipeline system is expected to dramatically improve the essential infrastructure to the North America and boost the American economy. The pipeline will generate jobs not only during the construction phase but also post the construction phase.
The democratic senators have gone on record and are persuading President Obama to clear the project. Eleven of the Senators have said that the Canadians have completed their part of the clearances and it is only United States that has not done its work.
The Keystone XL Pipeline project is touted to a shovel ready project. This is so because it can create about 9000 jobs almost overnight to the Americans who need every job that can be generated in the economy. The United States Department has gone on record in its report that this project will generate about 42,000 jobs.
The construction phase of the project is expected to create about seven million hours of labour. Which is huge and will have a very positive effect on the US economy. This will also create about 13,000 jobs. The project has negotiated comprehensive labor agreements with all the major unions and is assured of highly trained and committed manpower.
The spin-off of the jobs in the US economy is not just on jobs, but it is expected to have many social spin-offs too. The families of the workers will have their jobs, health care, dental care, retirement benefits, save their homes and send their children to schools. This kind of an impact on the society has a large positive spin-off and is expected to last for many years.
The project provides for much more than mere jobs and temporary wages. It has a positive impact on the community as well, providing for much more than what can be seen. The earlier referred report of the State Department has acknowledged and placed this fact on record. A very positive impact on the United States economy too.
The Keystone XL Pipeline project is a large – USD 5.3 billion project. It is the largest infrastructure development project currently in the United States. The direct employment is about 9000 jobs. The project will provide jobs to mechanics, laborers, safety coordinators, equipment operators, welders, electricians, pipefitters etc. All these labourers depend on the construction projects for their livelihood. The keystone XL project will be a boon for them. The project is also expected to generate a large number of indirect jobs in pipe and accessories manufacturing units.
The parent company for Keystone XL pipeline project has already executed contracts with about 50 suppliers across the United States for supply of material for this project. The parent company has a successful track record in an earlier project in the Gulf Coast Pipeline project and has kept up its promised commitments during the course of the project. Which itself assure that their promises on employment generation in the Keystone XL project also will be kept up. A report has projected that Keystone XL project is likely to add USD 172 billion to US GDP and create about 1.8 million man-years of employment over the next 22 years.
There is a thought that the Keystone XL pipeline project at some point of time could pose a threat to Ogallala aquifer. This aquifer is the main source of drinking water to over eight states in the United States and supports over 2 million people. This aquifer is the largest fresh water sources in the world. It also supports over USD 20 billion in agriculture economy. This trans-aquifer pipeline, the detractors have said the pipeline could be harmed and impact all the dependants extremely negatively.
However, are these claims really true? One of the best known hydro-geologists known to humanity and an authority on aquifers has gone on record that these fears are unfounded and untrue. He bases his argument on the fact that the penetration from an accidental spill could actually may not penetrate to the depths of the aquifer to pollute it and any pollution will be only localized.
Every large infrastructure project in the world has its set of detractors and supporters. The development of infrastructure required for the advancement, sustenance of humanity is a must. This is something like should we move from incandescent bulbs to CFLs to LED lights. An analysis of any topic good and negative things emerge and it is our prudence to take calculated balanced risks. The Keystone XL project has minimal environmental and cultural impacts while having large positive spin-offs on economy, community and long term energy security of the nation.
While the naysayers and the doomsday soothsayers continue to paint the project negatively, it is highly imperative that the projects get executed quickly and rapidly in the United States to take advantage of all the benefits it offers.
References
Affairs, U. S. (2013). Draft Supplemental Environmental Impact Statement for the KEYSTONE XL PROJECT Applicant for Presidential Permit: TransCanada Keystone Pipeline, LP (SEIS) . Washington, DC: United States Department of State Bureau of Oceans and International Environmental and Scientific Affairs.
Carlos A. Murillo, P. H. (2014). NATURAL GAS LIQUIDS (NGLS) IN North America, An Update, Part V: Future Outlook. Alberta: Canadian Energy Research Insititute.
Senators, H. H. (2014, April 10). Letter to President Obama to Clear Keystone XL Pipeline. Washington, DC.
TransCanada. (2014). Jobs and Economic Benefits. Retrieved from Keystone XL Project: http://keystone-xl.com/about/jobs-and-economic-benefits/
TransCanada. (2014). Keystone XL Pipeline Project. Retrieved from Keystone XL Pipeline Project: http://keystone-xl.com/
United States Department of State Bureau of Oceans and International Environmental and Scientific Affairs. (2014). Final Supplemental Environmental Impact Statement for the Keystone XL PRoject. United States Department of State Bureau of Oceans and International Environmental and Scientific Affairs.
