July 2011

Economic consequences of delaying Keystone XL
Oil sands development in Canada supports a broad array of jobs in the United States. A recently released Canadian Energy Research Institute (CERI) study estimated that oil sands projects are currently supporting over 80,000 U.S. jobs. However, current export pipeline capacity from Canada to the U.S. is approaching capacity. Delays in permitting the Keystone XL pipeline delay the start of additional oil sands projects in Canada. CERI estimates that new projects facilitated by the Keystone XL pipeline could support over 10,000 jobs in the U.S. in 2012, 27,000 jobs in 2013, and 34,000 jobs in 2014. By 2020, oil sands projects enabled by the Keystone XL pipeline could support almost 85,000 jobs. If the XL pipeline was to opt to expand its capacity from 700,000 barrels per day to 900,000 barrel per day, these employment numbers could rise by roughly 25 percent. But these jobs will only be realized if the Keystone XL pipeline is approved. Each year that the pipeline is delayed, the U.S. loses out on the significant economic benefit the pipeline could provide.
U.S. Jobs Foregone by Keystone XL Pipeline Delay
10.0

0.0

-10.0

-20.0

-30.0
Thousand Jobs

-40.0

-50.0

-60.0

-70.0

-80.0

-90.0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: CERI (2011) Economic Impacts of Staged Devleopment of Oil Sands Projects in Alberta (2010-2035)

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