The Keystone XL pipeline finally was approved by the U.S. State Department this Friday, ending the more than eight years political battle. The cost of this project is estimated to be near $15.7 billion. Also, it is believed it will have a big impact on the Canadian economy and the gas and oil sector.
It is believed that this project will generate directly and indirectly more than 42.100 new job positions, for Canadian workers, that will last for at least one year.
Alberta and other provinces around it will have the most employee compensation benefits from the Keystone XL pipeline. Based on a report by the Canadian Energy Research Institute (CERI) in July 2012 the manufacturing sector worker compensation of this area, between 2011 and 2035, would increase approximately $10.68 billion.
The cost difference when shipping oil via pipeline versus rail
For the oil producers, pipelines are a cheaper and more efficient shipping when compared to the rail. Analysts estimates vary due to many factors considered. But, shipping oil to the Gulf Coast is about $8 per barrel more cheap by pipeline than rail that is also more dangerous.
Due to the fallen prices of oil prices in recent years and pipeline constraints have eased, some analysts now put that figure closer to about $5 or $6 per barrel. This is the case as more and more oil companies begin investing in rail infrastructure. Especially now as Canada can face another pipeline shortage in the following years.
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