Pipeline pushers promulgate improbable numbers
TransCanada says its Keystone pipeline expansion would create 20,000 jobs; the State Department says it's more like 5,000.
Keystone pipeline: How many jobs it would really create
By Steve Hargreaves @CNNMoney
December 14, 2011: 8:03 AM ET
NEW YORK (CNNMoney) -- The Keystone pipeline project is back in play as part of the payroll-tax cut debate, and Congressional Republicans say it would create jobs.
But there's a wide range of estimates, with one forecast that Keystone could actually cost jobs.
The 1,700-mile long pipeline would transport crude oil from Canada's oil sands region in Alberta to refineries along the U.S. Gulf Coast.
The Obama administration pushed back the project last month pending a review from the State Department, but Republicans want to bring it back as a sweetener to approve an extension of the payroll-tax break and federal unemployment insurance. The House passed a measure Tuesday that would tie tax cuts to Keystone approval.
TransCanda (TRP), the company that wants to build the pipeline, says Keystone would create 20,000 "direct" jobs. That includes 13,000 construction jobs and 7,000 jobs making stuff like pump houses and the pipe itself.
It also projects nearly 120,000 "indirect" jobs -- think restaurant workers and hotel employees to support the construction....
But TransCanada numbers count each job on a yearly basis. If the pipeline employs 10,000 people working for two years, that's 20,000 jobs by the company's count.
The estimates also include jobs in Canada, where about a third of the $7 billion pipeline would be constructed.
The U.S. State Department, which must green light the project, forecasts just 5,000 direct U.S. jobs over a two year construction period.
Even according to TransCanada, the amount of permanent jobs created would be only in the hundreds.
(More here.)
Keystone pipeline: How many jobs it would really create
By Steve Hargreaves @CNNMoney
December 14, 2011: 8:03 AM ET
NEW YORK (CNNMoney) -- The Keystone pipeline project is back in play as part of the payroll-tax cut debate, and Congressional Republicans say it would create jobs.
But there's a wide range of estimates, with one forecast that Keystone could actually cost jobs.
The 1,700-mile long pipeline would transport crude oil from Canada's oil sands region in Alberta to refineries along the U.S. Gulf Coast.
The Obama administration pushed back the project last month pending a review from the State Department, but Republicans want to bring it back as a sweetener to approve an extension of the payroll-tax break and federal unemployment insurance. The House passed a measure Tuesday that would tie tax cuts to Keystone approval.
TransCanda (TRP), the company that wants to build the pipeline, says Keystone would create 20,000 "direct" jobs. That includes 13,000 construction jobs and 7,000 jobs making stuff like pump houses and the pipe itself.
It also projects nearly 120,000 "indirect" jobs -- think restaurant workers and hotel employees to support the construction....
But TransCanada numbers count each job on a yearly basis. If the pipeline employs 10,000 people working for two years, that's 20,000 jobs by the company's count.
The estimates also include jobs in Canada, where about a third of the $7 billion pipeline would be constructed.
The U.S. State Department, which must green light the project, forecasts just 5,000 direct U.S. jobs over a two year construction period.
Even according to TransCanada, the amount of permanent jobs created would be only in the hundreds.
(More here.)
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3 Comments:
Too bad the Keystone project doesn’t involve solar panels for everyone knows that “green” companies can do no harm. No one squawks when negative financial news is held up until after elections or when executives pay themselves nice bonuses at taxpayer expense just before declaring bankruptcy… no nothing dirty about “green” companies...
First, there was a GREAT Letter To The Editor in Saturday's Mankato Free Press ... very informative ... the author should be commended for educating the public.
Second, what should be most annoying is that the Republicans (including potential Presidentress Michele Bachmann at Thursday's debate) keep using this 20,000 jobs figure when it was already examined by the Washington Post in early November (link) and determined to be mis-informing people.
The article has some interesting factiods
– TransCanada chief executive Russ Girling said that the 13,000 figure was “one person, one year,” meaning that if the construction jobs lasted two years, the number of people employed in each of the two years would be 6,500.
– The indirect supply jobs would be outside the United States because about $1.7 billion worth of steel will be purchased from a Russian-owned mill in Canada.
OK, maybe you don’t believe the “liberal-biased media”, but don’t you have to believe the CEO ? As recently as Wednesday, CEO Girling stated that he is comfortable in working with a 2013 timeframe. After all doesn’t this legislation just requires the State Department to move its decision time-frame up from 2013 to February 2012 (sixty days) … and the President could still reject the State Department’s recommendations.
Third, reading the part about re-routing the pipeline does not explain who deserves credit for that ... Nebraska farmers. Read this
John Hansen, president of the Nebraska Farmers Union, said the pipeline issue has been a “difficult” one for Nebraskans.
“The citizens of this state were far ahead of elected public officials in terms of their desire to get criteria in place and routing and siting authority established because most citizens, when they looked at this issue, it made no sense to run an oil pipeline right through the heart of the Sandhills when it doesn’t need to go there,” Hansen said, echoing what Heineman had told the more than 100 people attending the luncheon.
Because the state of Nebraska had not previously assumed the siting and routing authority for the pipeline, “We put the state at risk,” Hansen said. “The pressure from the public was the driving force behind the scenes that helped provide the necessary push so when the governor called the special session, we caught a lucky break with the State Department’s announcement of the delay. Then all the arguments relative to state liability for a delay went away because the state is not liable for a federal-induced delay of the pipeline.”
Lastly, the article also mentions auxiliary jobs created ... well be careful of those 118,000 job figures … the Perryman “spin-off” job-creation model spins pretty far … a previous estimate from Perryman on a wind energy program would create … sit-down for a second … 51 dancers and choreographers, 138 dentists, 176 dental hygienists, 100 librarians, 510 bread bakers, 448 clergy, 154 stenographers, 865 hairdressers, 136 manicurists, 110 shampooers, 65 farmers, 898 reporters and 98 public relations people, and who could forget 1,714 bartenders. May be that’s why John Kline (R-MN-02) has opposed so many wind projects … it would create too many bartending jobs versus clergy.
hey, did you hear the latest Gospel from Madame Pelosilini?
Unemployment Benefits will create 600,000 jobs!!
And it's a lie that keystone will create 20,000 or more???
What's the color of the sky in your world?
Now, who wants to take up a bet that Keystone will create more jobs than unemployment benefits will? $100 bet to the first taker.
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