Keystone Pipeline will employ thousands of people, generate millions in taxes
StL Today
By Robert Jones
04/12/2009
The arrival of pipe to construct the Keystone Pipeline has attracted the attention of steelworkers, elected officials and the media. This has generated more debate about American manufacturing and free and fair trade.
While those are big issues, the focus on Keystone may have left the wrong perception about the project and the company developing the pipeline, TransCanada.
That's unfortunate because during the last 50 years, TransCanada, labor unions and their members who build pipelines and make pipe and pipeline equipment have built the largest pipeline system in North America. That wouldn't be possible without a productive relationship between workers and TransCanada.
In the United States, TransCanada operates in 33 states and has five regional offices and more than 1,500 permanent employees. Keystone is TransCanada's largest U.S. project. Keystone is a large-scale oil pipeline project that stretches more than 2,100 miles through three Canadian provinces, six states and more than 50 counties.
To build Keystone and deliver its economic and energy benefits requires years of planning and long lead times for each project phase, from commercial commitments to regulatory approval, and from engineering to construction.
Keystone is providing jobs for thousands of workers from local unions and members of the Pipeline Contractors Association of America during its three-year construction program.
As a $5.2 billion project, Keystone is an economic engine that will create more than 5,000 jobs for U.S. workers in 2009 and thousands more in 2010. In Missouri and Illinois, the project will create more than 1,300 jobs and make a capital investment of more than $1 billion.
Keystone's economic impact doesn't stop with the thousands of jobs it creates. Local and state economies will see direct and indirect benefits from Keystone, thanks to the need for supplies, food and lodging that local businesses provide for the thousands of workers who will build Keystone. On top of that, Keystone will generate millions in annual property tax revenue for local and state governments.
Some may ask why Keystone is securing some pipe from overseas, and that's a reasonable question. The answer is that we began to negotiate with pipe suppliers in 2006, when the economy was very strong and pipe manufacturing in the United States was at its peak. In early 2007, it became apparent that North American pipe mills would be unable to fulfill the entire pipe supply that Keystone would need.
Keystone issued bids to pipe suppliers around the world, including suppliers from the United States. North American pipe mills could fulfill half of Keystone's pipe order, and the rest of the pipe had to come from other suppliers.
While we have construction deadlines to meet, we also recognize the plight of local workers and know that they are facing a difficult job environment, especially in Illinois, where the unemployment rate is at its highest level in more than 17 years.
Delivering energy is the focus of our business, but Keystone's role in the community goes beyond construction and operations. Our efforts include working with and supporting communities, especially when they face difficult circumstances like the current tough economy.
As a result of the attention Keystone received, we want to make sure the community knows about the project and our commitment to the workers who build the pipeline and the communities where we live, work and conduct our business.
The fact is Keystone, which will deliver a reliable source of oil to meet U.S. demand, is good for America, good for Illinois and good for Missouri.
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