Keystone Pipeline Construction Essay Example

The U.S. and Canada will benefit greatly from opening the Keystone Pipeline, as it helps provides jobs, improves the economy, and has the safest features in the U.S. and Canada. Construction of the Keystone pipeline began in 2008 to connect refineries in the United States and Canada to support faster and more efficient transportation of crude oil from Canadian tar sands. The first three stages of the pipeline are already up and running, but the most controversial stage is stage 4 (Keystone XL). The Keystone Pipeline route runs from Hardisty, Canada through the following states: North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, and Texas. Keystone XL's proposed route would start in Nebraska and extend to refineries on the Texas Gulf Coast, such as Port Arthur and Houston.

The proposal to go ahead with the project has become the subject of intense debate after President Obama said a week of mulling over the initiative's fate was not enough to conclude. This response exposed the fragility of the Canada-U.S. alliance and raised questions about U.S. energy policy. Most people disagreed on whether the pipeline's risks outweighed its possible advantages due to the environmental implications, and the project ended under President Biden's leadership in January 2021. (Diotalevi, 2018). The government has made it hard for unemployed/laid-off Americans by ending a program that had the potential to increase jobs across the state. Nonetheless, the project is critical for economic development and improving energy sustainability. 

Keystone XL is a major project that could have many financial and environmental impacts. The project’s construction would employ around 9,000 professional Americans. (Diotalevi, 2018). In other words, there will be plenty of jobs for the American people, such as plumbers, mechanics, electricians, and welders. Research shows that the steel production industry offers nearly 750 job openings in the United States (Diotalevi, 2018). Manufacturers of steel pipes, fittings, valves, compressors, and control equipment benefit greatly from oil pipeline projects. The majority of Americans today who have a job are struggling due to rising gas prices in all states and the war between Russia and Ukraine. The average price of regular gas in Louisiana is about $4.30 per gallon while the minimum wage is $7.25 per hour. People will end up paying more for gas than they earn per hour if we do not finish the Keystone XL project. The US would not have to rely on foreign oil such as in Russia and be more oil independent in the state.

TransCanada Company is an Alberta-based energy company focused on building and managing North American energy infrastructure, with relationships with more than 50 distributors in every U.S. state. The company building the Gulf Coast pipeline employs more than 3,500 Americans. (Diotalevi, 2018) More importantly, the construction of the Gulf Coast and Keystone pipelines will have a positive economic impact on local as well as national governments. In particular, these initiatives are expected to raise more than $20 billion for the economy as a whole, $100 million for local governments, and $490 million for state governments (Verdict Media Limited, 2020). The pipeline project will generate more than $5 billion in property taxes.

According to the Canadian Energy Institute, the Keystone Pipeline project will increase the US GDP in terms of revenue and job creation over the next 23 years (Diotalevi, 2018). The institute claims that the company will add $175 billion to US GDP and provide 1.9 million people with long-standing jobs. Pipeline projects provide state governments with employment opportunities and tax revenues, leading to economic growth. Ultimately, this initiative will support the lives of the community while increasing the flow of taxpayers’ money in the form of US property taxes. The tax funds are vital for maintaining and funding local initiatives, disaster relief, medical and educational programs.

The construction of Keystone Pipeline promised to adhere to safety precautions to minimize its impact on the environment. In reality, pipelines are the most efficient and safest means of transporting fossil fuels. Over 95% of US natural gas and oil pipeline transport is safe and reliable (Smith, 2019). Special safety measures apply throughout the construction and design of the project. The company has integrated a remote shut-off valve to improve pipeline inspection. The pipes are deep in the ground and used at river intersections. (Verdict Media Limited, 2020). Trains transport crude oil from Alberta’s oil sands and fields as the debate over Keystone XL and other pipeline projects continues. An incident occurred in June 2018 where about 230,000 gallons of crude oil spilled in northwestern Iowa due to a train derailment. (Unknown, 2020)

In conclusion, despite the various ideas and contentious debates surrounding the construction of the Keystone pipeline, the above analysis sheds light on the reasons to proceed with the project despite rising natural gas prices. Its construction has created many jobs for U.S. citizens, generated tax revenue for local and state governments, and increased the nation's GDP, thereby boosting economic development. In addition, special safety measures are throughout the project's construction and design to reduce its impact on the environment and the project must continue.