Keystone Pipeline

Topics: Petroleum, Oil sands, Keystone Pipeline Pages: 5 (1964 words) Published: April 30, 2012
In February 9, 2005, the TransCanada proposed a pipeline system that would be able to transport crude oil from Canada into the United States. The pipeline was given the name the Keystone Pipeline System. Originally, the pipeline was to run from Alberta, Canada to refineries in Illinois. However, in 2008 another proposition was raised in order to extend the pipeline even further to down to Texas. The proposition is known as the Keystone XL. The possible construction of the pipeline is a controversial topic. Entrepreneurs believe that such a pipeline will stimulate the nation's economy and lead to an increase in the amount of jobs. On the other side, environmentalists believe that the pipeline will be detrimental for the environment as the pipeline can be prone to leakage at any given time. That being said, it is crucial to decide whether or not the Keystone is in the nation's best interest. Can this pipeline catapult us out of a recession or will it only hurt us in the long run? Personally, I believe that there is a possibility for both situations to occur. The Keystone Pipeline will be able to spur the nation's economy to a certain extent by providing a limited amount of jobs and slightly decreasing our dependency on foreign oil, but it will also aid in the destruction of our environment through carbon emissions and the risk of tar sand spillage. Due to the extension of the Keystone Pipeline, TransCanada predicts that thousands of jobs will arise in order to construct the pipeline. The Keystone XL stretches for approximately 1,700 miles through Canada and the United States. The $7-billion project will have the capacity to transport 830,000 barrels of crude oil a day. 25% of the oil being transported will come from American soil while the rest will be found in Canada. As a result, TransCanada predicts that 20,000 direct and 180,000 spin-off jobs will arise from construction of the pipeline. According to the Labor Network for Sustainability, over two million American construction workers are currently unemployed. In actuality, that is roughly every 1 in 5 construction workers. If the TransCanada will truly be able to guarantee as many jobs as they said they would, unemployment rates will go down. Granted, not all two million workers will be able to get a job, but a good portion of them will. Recently, TransCanada has been allowed to extend their pipeline from Oklahoma to Texas. TransCanada predicted that another 4,000 jobs should arise from the extension. Workers are in desperate need of jobs. The unemployment rate has been steadily increasing. The Keystone Pipeline offers working opportunities for Americans. It is a definite fact that the pipeline will create jobs. The underlying questions, however, are how long the jobs will last and how many jobs will be available. Once construction of the pipeline has concluded, so will the jobs. There would be no need to work on something that has already been finished. The amount of jobs TransCanada predicts to surface seems exaggerated. In fact, the U.S. State Department predicted that the pipeline would only create 6,500 temporary jobs, at most. The number of jobs that will be available is definitely a less significant number than the 20,000 that TransCanada predicted. According to TransCanada’s own data, only 11% of the construction jobs on the production of Phase I of the pipeline in South Dakota were filled by workers in the area. The majority of the jobs were only temporary and low paying. A study done at Cornell University stated that the pipeline would even lead to a drop in the number of available jobs as there would be a reduced investment in the clean energy economy. Construction of the XL pipeline will lead to available jobs for Americans, but these jobs will only be temporary. In such an economic crisis, a temporary job is not sufficient anymore. The pipeline will not be able to produce the full time jobs that Americans are seeking. There will be a need for workers once...
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