Keystone XL Pipeline Makes Good Fiscal Sense

There has been quite a bit of debate about the Keystone XL Pipeline with one side calling for its construction and the other side trying to make sure that it is never built.  In early November President Obama put a halt to the pipeline and the State Department indicated that they wouldn’t make a decision until 2013, well after the 2012 elections.  The truth is that the XL Pipeline will be good for the economy, the government, and the entire country.

First, it is important to understand the facts about the pipeline. The proposed pipeline, which would carry roughly 700,000 barrels of oil per day from Alberta, Canada, to refineries on the Gulf Coast, would encompass 1,700 miles and cost approximately $7 billion.  The pipeline would be an extension of one that became operational in 2010.

Most importantly, the pipeline will be a job creator, critical for a country struggling to come out of a recession.  According to the Heritage Foundation, “Building the pipeline would directly create 20,000 truly shovel-ready jobs; the Canadian Energy Research Institute estimates that current pipeline operations and the addition of the Keystone XL pipeline would create 179,000 American jobs by 2035.” This would mean a broader tax base and increased revenue to the government without raising taxes.  Also, more people collecting a paycheck means fewer people collecting unemployment benefits.

Even though the President delayed a decision on the pipeline until after the 2012 elections, the pipeline has been garnering support on both sides of the political aisle.  A mix of 22 House of Representatives republicans and democrats sent a letter to President Obama on October 19, 2011 that read in part, “Simply stated Mr. President, America needs the Keystone XL Pipeline. It is in our national interest to have a Presidential Permit issued for Keystone XL as soon as possible. America truly cannot afford to say “no” to this privately funded, $20 billion, jobs-creating infrastructure project, which would bolster our economic, energy and national security. To that end, we respectfully urge you to ensure that the Presidential Permit is issued for Keystone XL.”

In a statement on November 10, 2011 supporting the pipeline, Terry O’Sullivan, General President of the Laborers’ International Union of North America (LIUNA) noted that, “Environmentalists formed a circle around the White House and within days the Obama Administration chose to inflict a potentially fatal delay to a project that is not just a pipeline, but is a lifeline for thousands of desperate working men and women. The Administration chose to support environmentalists over jobs – job-killers win, American workers lose.”

The President’s choice to delay a decision reeks of politics rather than common sense.  Approving the pipeline would send a clear message that America is ready to shed its oil dependence and put Americans back to work.