Myth: Keystone XL is an export pipeline to China and other nations.
Fact: Keystone XL is not an export pipeline.
It is a supply line to U.S. Gulf Coast refineries — which have signed up to 20-year binding commercial contracts to receive oil through Keystone XL. This much-needed oil will allow refineries to create products that we all rely on every day — gasoline for our vehicles, aviation fuels, and diesel fuels to help transport goods throughout the continent. It makes absolutely no sense for companies to purchase cheaper Canadian crude, and then pay (again) to ship that product overseas, while continuing to import higher-priced oil from the Middle East and Venezuela.
In fact, the State Department’s own Environmental Impact Statement addresses this directly:
- Exports of Canadian crude are “unlikely to be economically justified for any significant durable trade given transport costs and market conditions.”
- Once [Canadian crude] arrives at the Gulf Coast, Gulf Coast refiners have a significant competitive advantage in processing compared to foreign refiners who would have to incur additional transportation charges to have the crude oil delivered from the Gulf Coast to their location.
- Gulf Coast refiners’ traditional sources of heavy crudes, particularly Mexico and Venezuela are declining and are expected to continue. Both the EIA’s 2013 AEO and EnSys WORLD model indicate that this demand for heavy crude in the Gulf Coast refineries is likely to persist.
- EnSys modeling shows no export of light or heavy crude carried on Keystone XL or any other pipeline into PADD 3 onward to overseas markets, confirming the barriers that PADD 3 heavy crude demand and transport costs.
The U.S. is an overwhelming net importer of crude oil. The International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) have both forecast the U.S. will still need to import oil to meet its domestic demand for decades, despite growing oil production in the U.S. Canadian and U.S. production transported by pipeline will displace more expensive crude oils from less stable countries.
Myth: The jobs that will be created by Keystone XL are really only construction jobs and therefore only temporary.
Fact: Construction jobs are incredibly important to the U.S economy.
It is time to stop the disrespectful attacks on the quality of construction jobs related to Keystone XL because they have a project completion date. The jobs required to build a state-of-the-art energy infrastructure project like Keystone XL require tremendous skill and training and are as important as any other job in North America. The Keystone XL Pipeline will mean jobs and economic growth for Americans and not for workers in other countries. These jobs are important and for many, a lifeline. That is why Keystone XL has the complete support of major trades and manufacturing unions across the U.S.
Keystone XL would support 42,100 direct and indirect jobs during construction of the pipeline contributing to approximately $2 billion in wages throughout the United States. Delays have prevented these jobs from being realized.
Keystone XL has supported more than 7000 jobs from the billions spent in sourcing the goods and services in North America. From motors and drives manufactured by Siemens in Ohio and Pennsylvania to the steel manufactured in Little Rock, Arkansas, the Keystone XL project has contracts with 50 suppliers in the United States.
Keystone XL will generate a significant amount of economic activity in the United States; the most significant benefits will be felt by the residents and counties where the pipeline is constructed.
TransCanada will be a substantial tax payer in many of the counties in which Keystone XL crosses. In 2012 alone approximately $37 million in property taxes were derived from the Keystone Pipeline being operational, increasing to $44 million in 2013. These additional revenues have helped address local infrastructure needs like roads, bridges, hospitals and other facilities that improve the standard of living for Americans.
The FSEIS projects that seventeen out of 27 counties which Keystone XL crosses are expected to see tax revenues increase by 10 per cent or more. This would contribute to approximately $3.4 billion to U.S. GDP and an overall economic boost for America.
Myth: Consumers won’t benefit as gas prices won’t go down.
Fact: While there are many factors which contribute to the price of gasoline at the pump, the largest cost is the cost of oil.
Keystone XL will transport oil from North America which costs less per barrel than the exact same product being purchased from Venezuela and the Middle East.
American consumers also benefit by having a safe, modern, efficient energy infrastructure which ensures the energy we use in our everyday lives comes from North America. Every day, Gulf Coast refiners pay higher prices for oil imported from places like Venezuela and the Middle East. But they don’t have to. Keystone XL will virtually eliminate imports from OPEC and the Persian Gulf entirely and replace them with oil sourced in Canada and the United States (Montana, North Dakota).
Myth: TransCanada does not have support from landowners.
Fact: Building a pipeline means creating strong, long-lasting relationships every step of the way.
That’s why we’re committed to treating the communities and each and every landowner we meet with honesty, respect and fairness. TransCanada has secured voluntary agreements with 100 per cent of landowners in Montana and South Dakota and 84 per cent of landowners in Nebraska.
Myth: TransCanada does not work with Native American tribes.
Fact: Keystone XL does not cross any reservation lands or lands held in trust.
Despite this, we work with tribes over the entire lifecycle of the project, to constructively and proactively address any concerns and to develop long-lasting mutually beneficial relationships and to discuss issues and opportunities.
TransCanada strives to create employment opportunities for Aboriginal and Native American communities along our pipeline routes. Last year, we spent more than $50 million in contracting and hiring in Aboriginal and Native American communities across North America.
As part of the construction team, tribal monitors are cross-trained in a number of areas, including wild land fire, heritage resource archeology and first aid, as well as having college degrees in a variety of disciplines.
Myth: TransCanada isn’t committed to a less carbon intensive future.
Fact: Environmental stewardship is an integral part of TransCanada’s business.
We build and operate energy infrastructure in order to provide oil, natural gas and electricity to millions of homes across North America. We don’t just build oil pipelines; we build wind farms, solar facilities and hydro operations as well. All of these projects have impacts on the communities they operate in. Our job is to ensure our projects respect the land, people and culture in those communities. It’s a job we take very seriously.
In 2014, the Carbon Disclosure Project ranked TransCanada to its “A-List” of companies making legitimate steps towards climate change mitigation. This positive news comes on the heels of TransCanada’s score at the 88th percentile on the Dow Jones Sustainability Index (DJSI) for 2014.
Pipelines like Keystone XL are the most energy efficient methods of transporting oil and natural gas over long distances. In its absence, hundreds of millions of barrels of oil are now being transported by less efficient and less environmentally friendly methods every year.
Myth: KXL is no longer needed and not cost effective for producers in light of falling oil prices.
Fact: Our customers remain fully supportive of the project despite current oil prices.
Keystone XL remains an important and strategic piece of energy infrastructure that will ensure U.S. refineries continue to have access to growing North American oil supplies and have the safest and most efficient means of transporting it.
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