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Pipeline Project in Canada - Essay Example

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Pipeline Project In Canada [Your Name] [University] [Instructor Name] Introduction TransCanada, a Canadian pipeline company wanted to start the Keystone XL pipeline project in 2008 for the purpose of transporting crude oil from Alberta’s oil fields to the U.S Gulf Coast refineries…
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Download file to see previous pages However, it needs a Presidential Permit as aforementioned. The projects overall positive effects will be considered. The pipeline project is in accordance firstly with the National Environment Policy Act. However an alternate route still needs to be found to avoid the Sand Hills region of Nebraska, which is an environmentally sensitive area (Flynn & Burnett, 2012). About The Project Many republicans, labor groups and industry groups support the pipeline project as they believe that it would bring about the opportunity of thousands of jobs in the US not only during its construction, but after it as well. It would also reduce dependence on oil from abroad since it would lead to the US having access to the largest oil reserve. Since if the project continues, it would bring in 700,000 barrels of oil to US daily which would be less the price and double the amount that it currently imports from Middle East. It is a project that needs to be ready and started and Republicans do not understand Obama’s move for delaying the project (Belogolova, 2011). The project is also estimated to bring in an increase of $20 million spending in private sector of the economy, and at a point where oil demand is weak and unemployment is rising, it will spur the economy. Also, if this project is approved, it will spur all aspects of the economy, which is becoming weaker and more dependent on imports (Belogolova, 2011). During construction of the pipeline alone, there is estimated to be a $20 billion increase in spending in the economy, and 118,000 jobs are expected to be created as well. 585 million dollars are also expected to be raised for both local and state taxes that are going to be on the route of the pipeline (transcanada). Many labor unions have also signed with TransCanada because of the perceived benefits of the project on jobs, employment and revenue. They have even signed terms of agreement with the company however, due to President Obama’s recall, their jobs are not established as of yet. This is also a privately financed project and therefore it will create jobs in manufacturing and construction and doesn’t need a single penny from the government. This effect of increased demand and supply will also have an effect on other factors in the economy as demand for goods and services in other interrelated industries will increase around the area of the pipeline project. This is called the multiplier effect. It has also been established through scrutiny and survey that it would have a limited detrimental impact on the US economy and would rather enhance the security of the economy. America’s workers want to work with this project which is important even for President Obama (Parformak, Service., & al, 2011). The four International Unions are also committed to work on this project as soon as the President gives the green light. Canada is a new player in the world energy market with the newly discovered oil sands. The current pipeline is finding it difficult to keep up with the new discoveries and bulk of oil. Also Canada and U.S are strong trading partners; however Canada is in strong demand now due to this new discovery of oil sands and if US keeps delaying the construction of this pipeline project, Canada will give in to the oil hungry world that seems to show more interest. And these energy sources are a stable energy source and therefor US should realize this and agree soon. This can also break the OPEC hold and if Obama ...Download file to see next pagesRead More
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