Keystone Pipeline Case Study

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The Keystone Pipeline is a series of metal pipes that run from Alberta Canada to Patoka, Illinois and Port Arthur, Texas. The pipes pass through North Dakota, South Dakota, Nebraska, Kansas, Missouri, and Oklahoma. The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. (n.d.) The Keystone XL Pipeline is a proposed 1,700 mile expansion to the current pipeline, which would branch west, impacting an additional state, Montana, and end in Cushing Oklahoma. The two parties in debate over the pipeline’s border crossing are the U.S. government and TransCanada. TransCanada is one of the continent’s largest providers of gas storage and related services. The company shares they are a leader in the responsible…show more content…
For example, after the BP oil spill the company 's stock value declined 34%, eliminating $96 billion of their company value. (Amadeo, 2015) Due to the lower supply and continued high demand, the price increases. Higher crude oil prices directly affect the cost of gasoline, home heating oil, manufacturing and electric power generation. (Amadeo, 2016)The increased cost impacts all Americans and the economy. However, companies claim that the economy can improve if there is an environmental disaster. For example, JP Morgan Chase said the BP oil spill on the Deepwater Horizon oil rig created 4,000 jobs through the cleanup process and paid $6 billion for their labor. (Amadeo, 2015) Although some companies claim spill disasters can help the economy, they are not accounting for the long term effect of the spills on wildlife habitats and how that will impact the economy in the next…show more content…
Both party members’ votes are easily swayed depending on whether they are seeking reelection the next year. Regardless of congress’ vote, the President continues to veto the bill. Supporters advocate that construction will give us access to more oil as we wait for renewable energy source technology to catch up to our country’s need. In addition, supporters claim the money spent on food, lodging, and transportation during construction will bring meaningful benefits to pipeline states. These proposed benefits do not help the overall economy in the long run. The Keystone XL Pipeline is a transmitter for Canadian oil to be sold across the world. Land and nearly all risks lie within the U.S. yet there is no significant benefit to the economy. There is too little to gain and too much to economically risk by allowing the construction of the XL
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