Quantcast
Energy

President Obama Admits Keystone XL Will Not Be a Job Creator

Cornell University Global Labor Institute

In an interview with the New York Times on July 27, President Obama asserted that construction of the Keystone XL pipeline would create approximately 2,000 jobs. The President’s claim is consistent with both the findings of the Cornell Global Labor Institute’s 2011 studyPipe Dreams? Jobs Gained, Jobs Lost by the Construction of the Keystone XL Pipeline on the job impacts of the project and the State Department’s latest assessment (SDEIS, March 2013).

“President Obama’s statement that the Keystone XL pipeline has relatively limited job creation potential is entirely correct,” said Sean Sweeney of the Cornell Global Labor Institute and co-author of the study.

“TransCanada and the American Petroleum Institute have argued that the project will create tens of thousands, if not hundreds of thousands of jobs, and our data revealed that these assertions were false and the job numbers highly inflated and based on flawed methodology," Sweeney continued. "Cornell’s more careful and comprehensive study, as well as the State Department’s analysis, revealed that the construction of the pipeline will produce far fewer jobs than TransCanada has claimed—only about 2,000 direct construction jobs a year for the two-year life of the project.”

The Cornell report showed that the pipeline would create approximately 2,500 direct construction jobs per year over the two-year life of the project. This number was affirmed in March 2013 when the State Department used TransCanada’s own numbers to analyze the job impacts of the pipeline, based on the current project definition for Keystone XL (Canada to Steele City, NE, plus two new pumping stations in Kansas).

The State Department found that the project would employ 3,900 full time workers for one year, or less than 2,000 workers per year, spread out over the expected two-year construction period. Nearly all of the jobs related to the project would last less than one year—4 months, 6 months or 8 months. Therefore, average annual employment is based on the number of construction workers multiplied by the construction period in weeks divided by 52 weeks in a year. The President’s numbers were therefore correct.

Both Cornell’s and the State Department’s job assessments also found that only 10-15 percent of the construction workers would be hired locally—in the states where the pipeline is being constructed, and that the number of permanent jobs related to the project would be minimal—35 permanent employees would be required for Keystone XL’s operation.

In addition to the direct construction jobs that would be created by the construction of the Keystone XL pipeline, the Cornell Global Labor Institute also found that TransCanada significantly inflated the number of indirect and induced jobs that the project would create by inflating the overall project budget. TransCanada has claimed it is a $7 billion project. It arrived at this number by including money that will be spent in Canada and funds that had already been spent in the U.S. at the time when its own commissioned study was released.

“A much smaller project budget means a lot less jobs,” says Lara Skinner, co-author of the Cornell study. “The U.S. is facing a serious unemployment problem and this problem should not be trivialized by TransCanada Corporation vastly overestimating the number of jobs that will be created by Keystone XL.

"I’m pleased that the President is aware of the actual job creation potential of the project, and recognizes that the minimal employment potential of the project should not be a determining factor in the decision to approve or disapprove Keystone XL,” Skinner concluded.

Ian Goodman and Brigid Rowan of the Goodman Group, Ltd., partnered with Sweeney and Skinner in the production of the Cornell report.

Visit EcoWatch’s KEYSTONE XL page for more related news on this topic.

——–

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Renewable Energy
Denver will get 100 percent of its energy from renewable sources by 2030. Robert Kash / Flickr / CC BY 2.0

Denver to Go 100 Percent Renewable by 2030

Denver became the 73rd city in the U.S. to commit to 100 percent renewable energy when Mayor Michael Hancock announced the goal in his State of the City speech Monday, The Denver Post reported.

The commitment is part of the city's larger 80×50 Climate Action Plan unveiled by Hancock Tuesday, which seeks to reduce Denver's greenhouse gas emissions 80 percent from 2005 levels by the year 2050.

Keep reading... Show less
Animals
Emilie Chen / Flickr / CC BY-ND 2.0

Against All Odds, Mountain Gorilla Numbers Are on the Rise

By Jason Bittel

The news coming out of East Africa's Virunga Mountains these days would have made the late (and legendary) conservationist Dian Fossey very happy. According to the most recent census, the mountain gorillas introduced to the world in Gorillas in the Mist, Fossey's book and the film about her work, have grown their ranks from 480 animals in 2010 to 604 as of June 2016. Add another couple hundred apes living in scattered habitats to the south, and their population as a whole totals more than 1,000. Believe it or not, this makes the mountain gorilla subspecies the only great apes known to be increasing in number.

Keep reading... Show less
Politics
The Power Shift 2011 rally targeted primarily the U.S. Chamber of Commerce for using its money and influence to stop climate and clean energy legislation. Linh Do, CC BY 2.0

Fossil Fuel Industry Outspent Environmentalists and Renewables by 10:1 on Climate Lobbying, New Study Finds

By Itai Vardi

Industry sectors based on fossil fuels significantly outspent environmental groups and renewable energy companies on climate change lobbying, new research has found.

In a study published Wednesday in the journal Climatic Change, Drexel University sociologist Robert Brulle shows that between 2000 and 2016, lobbyists spent more than $2 billion trying to influence climate legislation in the U.S. Congress.

Keep reading... Show less
Health
Pexels

Is Your Popcorn Laced With Hormone-Disrupting Chemicals?

By Kathryn Alcantar and Jose Bravo / Independent Media Institute

No one should be exposed to toxic chemicals in their food, particularly children. But that's exactly what the Center for Environmental Health (CEH) found in tests of microwave popcorn bags sold in Dollar Stores. These stores are frequented by communities of color and millions of poor Americans.

Keep reading... Show less
Sponsored
Climate
The Washington Post / Contributor / Getty Images

Climate Change May Stimulate the Chesapeake’s Blue Crab Population

By Amy Mcdermott

Jason McElwain isn't afraid of a pinch. He reached calmly into a basket of live crabs one Friday this June, and kept his cool even when a claw clamped down hard on his finger. "You get used to it after a while," he said, then yanked the crab off and tossed it into a plastic bin.

Keep reading... Show less
Food
Pexels

A Brief History of the Feral Blackberry

By Sara Bir

Blackberries are perhaps the best known of all foraged wild fruits. Whether they grow modestly on the perimeters of a ramshackle farm or thrive ruthlessly along the banks of a forgotten creek, there are hundreds of hidden wild blackberry havens waiting for opportunistic berry fanatics.

Keep reading... Show less
Sponsored
Climate
Joshua Tree National Park now has more unsafe ozone days than New York City. atramos / CC BY 2.0

Air Pollution in National Parks as Bad as 20 Largest U.S. Cities

A new study shows the importance of clean air regulations to prevent air pollution from reaching national parks.

A study published in Science Advances Wednesday found that, between 1990 and 2014, the ozone concentrations in 33 of the largest and most visited national parks were statistically indistinguishable from the ozone concentrations in the 20 largest U.S. cities.

Keep reading... Show less
Energy
Halliburton getting ready to frack in the Bakken formation, which underlies North Dakota, Montana, Saskatchewan and Manitoba. Joshua Doubek / CC BY-SA 3.0

Zinke’s Real Estate Deal With Halliburton Chair to Be Investigated

Ousted U.S. Environmental Protection Agency (EPA) head Scott Pruitt isn't the only polluter-friendly Trump appointee with sketchy ethics.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!