Remember when Kamala Harris and Joe Biden cancelled the Keystone Pipeline?
Well here is the damage that decision did to America.
The cancellation of the Keystone XL pipeline had a range of costs and implications, which can be categorized into economic, and political. Here’s a breakdown:
Economic Costs:
1.Job Losses:
•The Keystone XL project was expected to create thousands of jobs during the construction phase. The cancellation led to the loss of those potential jobs. Estimates varied, but it was projected to create around 11,000 direct jobs and potentially more in indirect jobs related to the project.
2.Economic Impact on Local Communities:
•Communities along the pipeline route anticipated economic benefits from the construction and operation of the pipeline, including increased business for local contractors, service providers, and hospitality industries. The cancellation diminished these expected economic boosts.
3.Investment Losses:
•TC Energy, the company behind the Keystone XL pipeline, spent billions of dollars on the project before its cancellation. The company wrote off approximately $1.3 billion in investment after the Biden administration revoked the permit.
4.Impact on U.S.-Canada Trade:
•The pipeline was intended to transport oil from Alberta, Canada, to refineries in the United States. Its cancellation affected Canada’s oil industry, which was looking to the Keystone XL as a major outlet for its oil sands production. The U.S. also lost a potential increase in the supply of Canadian crude oil, which could have impacted energy markets and prices.
Political Costs:
1.U.S.-Canada Relations:
•The cancellation strained relations between the U.S. and Canada. Canadian leaders, including Alberta’s premier, expressed significant disappointment and concern over the decision, which they saw as a major economic blow.
Long-Term Strategic Costs:
1.Energy Security:
•Proponents of the pipeline argued that it would have bolstered North American energy security by providing a stable and reliable source of crude oil from a friendly neighbor. The cancellation may have long-term implications for U.S. energy policy, especially in the context of global energy market dynamics.
Overall Financial Cost:
•Beyond the immediate financial losses for TC Energy and the lost jobs, there is an ongoing debate about the broader economic implications, such as lost tax revenue, potential increases in energy prices, and the impact on the competitiveness of North American oil producers.