Environmental activists gather outside the White House on Aug. 22, 2011, as they continue a civil disobedience campaign against a proposed oil pipeline from Canada to Texas. (J. Scott Applewhite/AP Photo)
ProPublica.org continues its excellence in providing insight into non-transparent projects, transactions, potential fiascos and questionable actions. This is happening right now; passion, controversy and questions about the Keystone XL Pipeline are as intense as the ones about “fracking” here in Pennsylvania.
“By the end of this year, the State Department will decide whether to give a Canadian company permission to construct a 1,700-mile, $7 billion pipeline that would transport crude oil from Canada to refineries in Texas.
“The project has sparked major environmental concerns, particularly in Nebraska, where the pipeline would pass over an aquifer that provides drinking water and irrigation to much of the Midwest. It has also drawn scrutiny because of the company’s political connections and conflicts of interest. A key lobbyist for TransCanada, which would build the pipeline, also worked for Secretary of State Hillary Clinton on her presidential campaign. And the company that conducted the project’s environmental impact report had financial ties to TransCanada.
“Here’s our breakdown of the controversy, including the benefits and risks of the project, and the concerns about the State Department’s role.
“Potential benefits – energy security and jobs for Americans — and how they’re disputed
“Proponents of the project point to two main benefits for Americans. First, it would improve America’s energy security, because it would bring in more oil from friendly Canada and reduce our dependence on volatile countries in South America and the Middle East. Secondly, the pipeline would create well-paying construction jobs and provide a broader economic boost to the American economy. Labor unions have supported the project.
“TransCanada estimates that the project would directly create 20,000 construction and manufacturing jobs for Americans. A study paid for by TransCanada also estimated the economic impact over the life of the pipeline at about $20 billion in total spending.
“But a report by Cornell University’s Global Labor Institute questioned those numbers, noting that the project would ‘create no more than 2,500-4,650 temporary direct construction jobs for two years, according to TransCanada’s own data supplied to the State Department.’
“Critics of the project have also questioned whether the pipeline’s oil, once processed in American refineries on the Gulf Coast, would actually be sold to Americans rather than being exported for sale elsewhere. As a New York Times editorial opposing the pipeline noted, five of the six companies, that have already contracted for much of the pipeline’s oil are foreign companies — and the sixth focuses on exporting oil.”
Environmental activists gather outside the White House on Aug. 22, 2011, as they continue a civil disobedience campaign against a proposed oil pipeline from Canada to Texas. (J. Scott Applewhite/AP Photo)