Page 14 - MIN.ECUE - 27MARCH2017

BUSINESS A25
Monday 27 March 2017

Debate renewed over economic benefits of Keystone pipeline

The Keystone Steele City pumping station, into which the planned Keystone XL pipeline is to con- TransCanada overstates of the current flow. U.S. oil
the economic benefits of production is around 9 mil-
nect to, is seen in Steele City, Neb. President Donald Trump is calling his administration’s approval the pipeline and lowballs lion barrels per day.
the impact of using tar- Two other planned pipe-
of the Keystone XL pipeline a new era for American energy policy. sands oil. lines would carry Alberta oil
They say it generates more to export markets, creating
(AP Photo/Nati Harnik) carbon emissions to refine competition with Keystone
the heavy, thick crude than XL for commitments from
DAVID KOENIG the pipeline have been permanent jobs, accord- to process other oil types. A oil producers.
civil engineer at the Univer- Some analysts think only
AP Business Writer hotly debated, however, ing to the report. sity of Nebraska said that two of the three pipelines
TransCanada also signifi- will get built.
DALLAS (AP) — President and many experts believe cantly underestimated the
chance of a major oil spill THE COMPANIES
Donald Trump is calling his it will have only a small im- ECONOMIC IMPACT from the 36-inch-diameter By providing a route to
pipeline. the Gulf Coast, Keystone
administration’s approval pact on the U.S. economy. The State Department esti- XL could raise the price of
THE OIL tar sands oil. Among the
of the Keystone XL pipeline mated that construction of Keystone XL would carry oil companies that could
up to 830,000 barrels a day benefit: Canada’s Suncor
a new era for American en- JOBS Keystone XL would contrib- from Alberta to Nebraska, Energy Inc. and Canadian
where it would connect Natural Resources Ltd. and
ergy policy. The company propos- ute $3.4 billion to the na- with the existing Keystone Texas-based Exxon Mobil
pipeline that flows to Gulf Corp., whose former CEO,
As expected, the State De- ing the pipeline, Calgary- tion’s output. That’s about Coast refineries. Rex Tillerson, is now the
During an Oval Office cer- secretary of state. Tillerson
partment reversed a de- based TransCanada Corp., 0.02 percent of the $18 tril- emony Friday, TransCan- recused himself from the
ada CEO Russell Girling pipeline decision.
cision by the Obama ad- estimates the project could lion U.S. economy. thanked Trump for pushing A pipeline to Gulf refineries
the pipeline, and he called will make drilling in Alberta
ministration and favored create up to 6,500 con- it “a very, very important more attractive.
day” for the company. The 2014 drop in oil prices
energy development over struction jobs for two years. TAXES In a video on the com- hurt because production
pany website, Girling said and processing are more
environmentalists’ objec- In a 2014 report, the State The State Department es- the pipeline is needed expensive in the oil sands
because North America than in many other plac-
tions to the pipeline, which Department projected the timated that Keystone XL needs oil so badly that es. Last year Exxon wrote
it will continue to import down the value of its Ca-
will carry thick Canadian pipeline would support would generate $70 million crude “for years to come.” nadian reserves.
But in January he had
crude oil to Nebraska, 3,900 in construction jobs. in new state and local tax- leavened his optimism with GASOLINE PRICES
some doubts because The pipeline likely will not
where it can flow on to Including work indirectly re- es along the route during of uncertainty about de- be completed for several
mand from oil producers. years, so there will be no
refineries along the Gulf lated to the construction, construction and $55.6 mil- Canada is the largest ex- immediate effect on prices
porter of oil to the U.S., at at the pump. It’s not clear
Coast. the number of jobs bal- lion in property taxes once about 3.3 million barrels a that Keystone XL will even-
day in 2016. Running at ca- tually lead to lower prices
Trump on Friday called it loons to 42,100, the State oil starts flowing. pacity, Keystone XL would — it could have the reverse
equal about one-fourth effect.
“a great day for American Department estimated.

jobs.” But once the pipeline is fin- COSTS

The costs and benefits of ished, it will create just 35 Environmental groups say

German candymaker Haribo to

build a new plant in Wisconsin
SCOTT BAUER declined to actually eat
Associated Press any because he said he
MADISON, Wis. (AP) — Ger- gave up sweets for Lent.
man candymaker Hari- The $242 million candy-
bo, which is known for its making plant is to be built
brightly colored gummy in Pleasant Prairie, which is
bears and bow tie-wearing near Kenosha and just 45
gold bear mascot, plans to miles (72 kilometers) north
build its first North American of Chicago.“We couldn’t
factory in southeastern Wis- be more pleased,” Walker
consin not far from Chica- said.
go, Gov. Scott Walker an- He credited the combi-
nounced late last week. nation of available work-
The facility is slated to be ers, tax incentives, nearby
operational by 2020 and technical colleges and
employ 400 people once universities, and a global
fully up and running, Walk- transportation network with
er and economic develop- luring Haribo when it “can
ment officials said. be anywhere in the world,
An exuberant Walker held anywhere here in North
up two bags of Haribo America, anywhere in the
candy during a Capitol country, anywhere in the
news conference, but Midwest.”