Page 26 - ARUBA TODAY

BUSINESS Monday 27 March 2017
A25
Debate renewed over economic benefits of Keystone pipeline

TransCanada overstates of the current flow. U.S. oil
the economic benefits of production is around 9 mil-
the pipeline and lowballs lion barrels per day.
the impact of using tar- Two other planned pipe-
sands oil. lines would carry Alberta oil
They say it generates more to export markets, creating
carbon emissions to refine competition with Keystone
the heavy, thick crude than XL for commitments from
to process other oil types. A oil producers.
civil engineer at the Univer- Some analysts think only
sity of Nebraska said that two of the three pipelines
TransCanada also signifi- will get built.
cantly underestimated the
chance of a major oil spill THE COMPANIES
from the 36-inch-diameter By providing a route to
pipeline. the Gulf Coast, Keystone
XL could raise the price of
THE OIL tar sands oil. Among the
Keystone XL would carry oil companies that could
up to 830,000 barrels a day benefit: Canada’s Suncor
from Alberta to Nebraska, Energy Inc. and Canadian
where it would connect Natural Resources Ltd. and
The Keystone Steele City pumping station, into which the planned Keystone XL pipeline is to con- with the existing Keystone Texas-based Exxon Mobil
nect to, is seen in Steele City, Neb. President Donald Trump is calling his administration’s approval pipeline that flows to Gulf Corp., whose former CEO,
of the Keystone XL pipeline a new era for American energy policy. Coast refineries. Rex Tillerson, is now the
(AP Photo/Nati Harnik) During an Oval Office cer- secretary of state. Tillerson
DAVID KOENIG the pipeline have been permanent jobs, accord- emony Friday, TransCan- recused himself from the
AP Business Writer hotly debated, however, ing to the report. ada CEO Russell Girling pipeline decision.
DALLAS (AP) — President and many experts believe thanked Trump for pushing A pipeline to Gulf refineries
Donald Trump is calling his it will have only a small im- ECONOMIC IMPACT the pipeline, and he called will make drilling in Alberta
administration’s approval pact on the U.S. economy. The State Department esti- it “a very, very important more attractive.
of the Keystone XL pipeline mated that construction of day” for the company. The 2014 drop in oil prices
a new era for American en- JOBS Keystone XL would contrib- In a video on the com- hurt because production
ergy policy. The company propos- ute $3.4 billion to the na- pany website, Girling said and processing are more
As expected, the State De- ing the pipeline, Calgary- tion’s output. That’s about the pipeline is needed expensive in the oil sands
partment reversed a de- based TransCanada Corp., 0.02 percent of the $18 tril- because North America than in many other plac-
cision by the Obama ad- estimates the project could lion U.S. economy. needs oil so badly that es. Last year Exxon wrote
ministration and favored create up to 6,500 con- it will continue to import down the value of its Ca-
energy development over struction jobs for two years. TAXES crude “for years to come.” nadian reserves.
environmentalists’ objec- In a 2014 report, the State The State Department es- But in January he had
tions to the pipeline, which Department projected the timated that Keystone XL leavened his optimism with GASOLINE PRICES
will carry thick Canadian pipeline would support would generate $70 million some doubts because The pipeline likely will not
crude oil to Nebraska, 3,900 in construction jobs. in new state and local tax- of uncertainty about de- be completed for several
where it can flow on to Including work indirectly re- es along the route during 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
Coast. the number of jobs bal- lion in property taxes once porter of oil to the U.S., at at the pump. It’s not clear
Trump on Friday called it loons to 42,100, the State oil starts flowing. about 3.3 million barrels a that Keystone XL will even-
“a great day for American Department estimated. day in 2016. Running at ca- tually lead to lower prices
jobs.” But once the pipeline is fin- COSTS pacity, Keystone XL would — it could have the reverse
The costs and benefits of ished, it will create just 35 Environmental groups say equal about one-fourth effect.
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.”