Keystone XL Pipeline

The Keystone XL Pipeline is project under proposal that would cover 1,179 miles(or 1,897km), with a 36 inch diameter, stretching from Hardesty, Alberta(Canada) to Steele City, Nebraska. Why is this so important in today’s day in age? It’s critical because it adds vital link between the United States and Canada, for the U.S. to extract crude oil and reduce it’s dependence on foreign oil. Adding to the benefit from bringing in oil from Canada, it will also improve the transportation of oil from Montana and North Dakota throughout the country. The project is being led by TransCanada. While the pipeline has yet to be built, it’s estimated that construction will begin in 2015. “The pipeline will have capacity to transport 830,000 barrels of oil per day to Gulf Coast and Midwest refineries, reducing American dependence on oil from Venezuela and the Middle East by up to 40 per cent.” This is crucial, because our dependence on oil from the Middle East has caused our country great strife with political unrest and violence spurring in the Middle East..without firm knowledge that the area in the Middle East will remain peaceful, oil prices have no way of staying stagnant. http://keystone-xl.com/about/the-project/#

The Keystone XL Pipeline project will generate nearly $1.8 billion in Nebraska during the construction phase alone. It will also have a great impact on state taxes–generating about $135 million in state/local taxes. It also will bring the creation of nearly 750 jobs in the construction field, and it’s important to note that this project is privately funded so our tax dollars are not flowing into it. The project will see the employment of over 9,000 Americans along the route, with over 42,000 jobs being created in total. http://keystone-xl.com/facts/myths-facts/

Looking at a greater global outlook, the United States wants to stay competitive with other global superpowers, and control of crude oil is premium among the powers. 70% of Russia’s export income comes from crude oil, which means they are merely a petro-economy and would be vulnerable on the global stage if oil was reduced. With the union of Canada and the United States, the two countries contain more oil and gas-reserves than Russia and the Middle East and can affect the global market in many ways. They can effectively take Russia’s clients(primarily Ukraine), and continue to do business with those countries, while Russia struggles.  The pipeline would lead to,” punishment toward anti-American Venezuela; proceeds toward Canada which buys more goods and services from the US than the European Union does; punishment toward Russia by casting into the markets more Venezuelan oil; replacement of Venezuelan oil with Canadian oil that is $30 a barrel cheaper (roughly 30 percent less) and even an improved environmental outcome”.