Keystone XL Pipeline Project - Essay Example

Keystone XL Pipeline Project. Keystone XL Pipeline Project. TransCanada made the first announcement to construct the Keystone XL pipeline in 2005.Keystone XL pipeline project when complete would transport crude oil from Hardisty to US markets mainly the Midwest and Gulf coast. In 2008, TransCanada made an application to the US department of State to authorize the construction of the pipeline to transport crude oil at the border of US and Canada. In the year 2011, the department stated it required additional time to collect the necessary information about the project citing the impacts it would have on the Sand Hills region. It was mainly to ensure that the project implementation would be in the best interest of the nation. In 2012, the Department of State denied TransCanada a permit to begin the project. It stated that a span of sixty days was not sufficient to collect the information on the benefits of the project to the nation. Subsequently, the company collaborated with Nebraska department of environment quality and conducted an impact assessment. It was done to determine the best location the pipeline would pass with minimal environmental impacts. In May 2012, TransCanada made an application for the presidential permit. The US department of state was obligated to either accept or deny the company the permit taking into consideration whether the project is beneficial to the people. Many factors were being considered such as security, culture, foreign policy and environmental impacts (Yuan, 2011). In 2014, the Department of State invited members of the public to comment on the factors that would be considered of national interest. Moreover, it is also consulting with different agencies such as department of Justice, Defense, Commerce and Energy to ensure that the correct decision is made on the permit application. TransCanada is facing much opposition from community-based groups and the environmental organizations. It is mainly because of greenhouse gas emissions resulting from the usage of oil sands crude. Furthermore, this will lead to the prolonged dependence on fossil fuel by the United States. Emissions of greenhouse gases accelerate the effects of global warming as it results to the destruction of the ozone layer. Community groups are strongly opposing the project because it is being constructed on their lands thus affecting their ability to produce food through farming. Furthermore, there will be no land to graze their cattle. Keystone XL pipeline project poses a high risk to the neighboring community because the potential of spillage is huge. Eighty-eight percent of the land where the pipeline would be constructed is privately owned. Many landowners fear the high risk of oil spills that would contaminate the water and land resources making it unsafe for drinking, irrigation and recreational activities. The contents of the crude oil being bitumen can lead to loss of lives when released into the environment. The construction of the pipeline would also have a negative impact in the energy sector. This is mainly because its implementation would lead to some concerns with regards to international trade agreements. International events will continue to affect oil prices in the world even with the construction of keystone XL pipeline. For example, when there was disruption of oil supply during the unrest in Libya, the US experienced higher prices of crude oil. The US did not import any crude oil from Libya during this time, and it, therefore, indicates that the oil market all over the world is integrated. Keystone XL project has been delayed for years due to many reasons ranging from political to environmental issues. TransCanada considered using rail as an alternative option of transporting the crude oil from Hardisty to the Gulf region. Rail is a very expensive option because it would increase their operational costs as compared to using the pipeline. Moreover, moving oil by rail has been discouraged by environmental groups who argue that it will increase the production of the oil sands. Furthermore, there have been explosive derailments that have led to deaths such as the Lac-megantic that killed 47 people. The construction of this pipeline has been faced by several issues since TransCanada proposed it. They include political, environmental, and diplomatic issues. Keystone pipeline has become a major election issue in the November 4th elections. The democrats are in a dilemma as to whether President Obama should approve this project or not. The landowners have also complained of being threatened by TransCanada, and they fear their private lands will be confiscated. Diplomatic issues have also led to the delays in approving this project. The U.S government has been accused of showing little concern when Canadian matters are at hand. Construction of proposed Keystone XL pipeline will be very expensive because it will be done in phases. Some of the costs to be incurred by TransCanada will include construction of modern pipelines. The design of this pipeline must meet the high standards as required by the U.S regulators. The pipeline would be built with tough-line steel so as to reduce the incidents of spillage. Moreover, TransCanada will install better control systems that can identify any leaks in the pipes in the quickest time possible (Flynn, 2012). It will ensure that the land and water resources are conserved. Keystone XL pipeline project will have a positive impact on the U.S economy. More than seven billion U.S dollars will be spent in the construction of the project that will in turn stimulate the economy. Employment opportunities will be created as thousands of jobs will become available. The manufacturing sector will also benefit from the construction of this pipeline. Their revenues will increase because more fittings and pumps will be sold to TransCanada. Development of Canada’s oil sands will provide more stability and security in the energy sector of the United States. Oil production in Mexico and Venezuela has been decreasing over the years and the construction of this pipeline will ensure that there is sufficient supply of crude oil in the U.S. Moreover, it will lead to reduction in its dependence of crude oil from Mexico and Venezuela. The pipeline will also lead to the expansion of the oil market to the Gulf coast resulting to a decrease in input costs thus more income for the producers. The project will pay taxes to the counties where the pipeline will pass through. Therefore, annual tax revenues in the counties will increase once the pipeline becomes operational. Property taxes will also be collected facilitating the construction of schools and hospitals. Community members living around the area it passes through will benefit economically because their businesses will thrive and make more income. In conclusion, Keystone XL pipeline project will be beneficial as it will provide more employment opportunities and security in the U.S energy sector. However, it will also impact the environment negatively through greenhouse gas emissions and lead to the destruction of natural resources. References. Yuan, A. (2011). Supplemental draft environmental impact statement for the Keystone XL Project. Washington, DC: United States Dept. of State, Bureau of Oceans and International Environmental and Scientific Affairs. Flynn, G., & Burnett, D. (2012). The Keystone XL pipeline project. Hauppauge, N.Y.: Nova Science Publishers, Inc. Avery, S. (n.d.). The pipeline and the paradigm: Keystone XL, tar sands, and the battle to defuse the carbon bomb. Read More