Why are we building the controversial Keystone XL Pipeline?
Here are five of the most pressing questions that have become the focus of our country’s political debate.
The Pipeline Will Cost More Than $8 Billion To Build Source The United States already has the world’s second-most expensive oil pipeline, after the one built by ExxonMobil in Nigeria.
As of December, the pipeline’s price had increased by almost $1,500 per barrel to nearly $16 billion.
The cost of construction and maintenance is expected to be nearly $10 billion.
But even with those costs, the proposed Keystone XL will cost $8 billion to build, according to a new study from the Center for American Progress.
In other words, it will cost far more than the project is worth, according the report, which also warns that the pipeline will be subject to environmental review delays and other challenges.
The new analysis by researchers at Columbia University’s Center for Energy and Environment, a think tank founded by former vice president Al Gore, estimates that the Keystone would require about 1,200 additional jobs, about 4,000 temporary construction jobs, and about $4.6 billion in economic damage.
The Keystone XL Would Create A $40 Billion Tax Impact On The Economy If It Was Built Now.
It’s hard to overstate the economic impact of a pipeline built today.
The pipeline’s proposed route would stretch from Alberta to the Gulf Coast and then to refineries on the Gulf coast.
By 2040, the project would run the equivalent of more than half the Keystone’s projected oil consumption, according a recent report from the American Petroleum Institute.
This would mean that if the pipeline is built today, it would create a $40 billion economic impact by 2040 on the U.S. economy, according Brookings Institution economist Peter Orszag.
The Line Is Already Expensive And Will Be Expensive As We Learn More About It.
The $8.5 billion price tag includes the estimated costs of a two-year delay and a one-year extension of the permit required to conduct environmental studies.
The project is already estimated to cost $7.3 billion.
The Infrastructure Is Not As Efficient As The Project Suggests.
In order to meet its proposed daily capacity of 1.4 million barrels per day, the Keystone project would require a new pipeline and pipeline equipment to carry it.
A new pipeline would have to be built every three years, and this would add an additional $5.7 billion to the project’s estimated cost.
Even without the new infrastructure, the new pipeline will still require more than two months to carry its daily oil load.
The Project Is Already In The Public Interest And Will Save Americans Thousands Of Jobs In The Pipeline Industry.
A study released by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in August said that Keystone XL would not create an economic hardship for the U:A.
It estimates that if Keystone XL is built in a manner that minimizes the number of pipeline accidents, the spillage and fire hazard, and the public health impact, the economic benefits would be substantial.