North American Oil & Gas Pipelines

FEB 2017

North American Oil & Gas Pipelines covers the news shaping the business of oil and gas pipeline construction and maintenance in North America, including pipeline installation methods, integrity management innovations and managerial strategies.

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8 North American Oil & Gas Pipelines | FEBRUARY 2017 North America News Pipeline Industry Applauds Revival of KXL, DAPL Projects P ipeliners are rejoicing Presi- dent Donald Trump's sign- ing of two executive orders to revive long delayed pipeline projects. On Jan. 24, the president signed five such orders, the first two concerned the Keystone XL (KXL) pipeline and the Dakota Access Pipe- line (DAPL). Associations and think-tanks that support the energy industry released a flurry of supportive statements prais- ing the actions. The Association of Oil Pipe Lines (AOPL) expressed gratitude for the moves on behalf of pipeline operators. "We thank President Trump for giv- ing the American people the benefits of jobs and plentiful, affordable en- ergy that pipelines will bring," said Andrew Black, president and CEO of AOPL. AOPL said that the signing of the ex- ecutive orders demonstrated Trump's support for the two pipelines and for streamlining the review and approval of pipeline projects generally. Construction of the KXL pipeline would provide more than 42,000 U.S. jobs and $2.1 billion in U.S. worker payroll, according data AOPL attrib- uted to the U.S. State Department. While the project would support 6,800 construction jobs with $420 million in payroll, it would also lead to 4,600 manufacturing jobs with $309 million in payroll, 4,400 jobs in trade with $172 million in payroll, 2,200 jobs in finance and insurance with $131 million in payroll, 5,100 jobs in other professional services with $343 million in payroll, 2,700 jobs in health services with $141 mil- lion in payroll, and 5,700 jobs in food and accommodations with $278 mil- lion in payroll. The State Department's environ- mental review also found building KXL would do more to protect the environment and avoid greenhouse gas emissions than any alternative, including rejecting the pipeline. Ac- cording to U.S. government statistics, 99.999 percent of petroleum products shipped by pipeline reach their desti- nation safely. Since 1999, the number of incidents along pipeline rights of way is down 50 percent. The Dakota Access Pipeline has created roughly 12,000 jobs during construction and is a critical link from the Bakken formation, which supports more than 80,000 North Dakota jobs, according to the AOPL statement. It has brought hundreds of millions of dollars in investment in heavy equipment and thousands of construction jobs to the state. DAPL has already spent more than $3.54 bil- lion in construction and development of the pipeline and continues to invest hundreds of millions a month into the U.S. economy as it moves to finish the project. The Dakota Access Pipe- line project will result in an estimated $156 million in sales and income tax- es during construction and $55 mil- lion in property taxes annually. The Consumer Energy Alliance (CEA) also praised the president's actions, but stressed that the Unit- ed States needs to build even more pipelines. "Critical infrastructure projects like Newly elected President Donald Trump signs executive orders on Jan. 24 to revisit permitting applications for the Keystone XL and Dakota Access Pipeline projects.

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