Keystone Pipeline Research Paper

Words: 1632
Pages: 7

Keystone XL Pipeline: Important Information The Keystone Pipeline is an oil transport system that runs from the Western Canadian Sedimentary Basin (WCSB) in Alberta to refineries in Illinois and Texas. It also runs through an oil storage facility in Cushing, Oklahoma on its way to Texas (Walker 1). The first phase of the $12 Billion project, delivering crude oil from Alberta to Steele City, Nebraska, to the refinery in Illinois began in June 2010 (Dobson). The second phase of the project, delivering crude oil from Steel City, Nebraska, to Cushing, Oklahoma began on February 8th, 2011 (Cunha). The third phase, delivering crude oil from Cushing, Oklahoma to delivery points on the U.S. Gulf Coast began on January 22nd, 2014 (Howard). Finally, …show more content…
A Presidential Permit from the U.S. is necessary because the pipeline crosses the United States- Canadian border (Luxen). In December 2011, Republicans in Congress inserted a provision in a bill passed giving President Obama 60 days to decide the fate of the XL pipeline (Brodern). President Obama turned down the permit citing an inadequate environmental assessment. In February 2015, a bill went through the Republican-led congress that would allow construction on the pipeline to begin immediately. However, President Obama vetoed the bill shortly after, saying the bill undermined the necessary review process (Luxen). Meanwhile, the debate is continuing after years of debate with no end in …show more content…
According to the State Department’s final environmental assessment there would be a great deal of economic benefit. First, the construction of the pipeline could potentially create 42,000 direct jobs and indirect over a two-year period. The earnings of the employees could be approximately $2.05 billion. Direct expenditures (e.g. material costs) would cost approximately $3.3 billion. A great deal of the materials would be purchased in the U.S. providing a boost for Gross Domestic Product (GDP). TransCanada plans to provide temporary housing for the workers by using local housing and construction camps. The property taxes for the camps could potentially be $2 million, which is equivalent to one full year of property tax revenue for seven host counties (Walker