Who Will Benefit from Dakota and Keystone Pipelines?

Long, intrusive and wildly controversial, pipelines are one of the biggest issues faced by the oil and gas industry. Now, President Donald Trump has just announced that despite opposition, construction will move forward on the Keystone XL and Dakota Access pipelines.

Both were stalled under the Obama administration, with environmental activists and tribal sovereignty groups slamming the project. But despite ecological and social concerns, the White House maintains that the pipelines will provide a much-needed boost to the American economy.

So who stands to benefit from the Dakota and Keystone pipelines? According to Trump, a handful of diverse groups will reap the benefits.

Workers

One of the most important constituencies is workers, with Trump estimating that the revived projects will create around 28,000 US jobs. Of course, estimates do vary depending on who is asked. While the State Department noted that a total of 42,000 jobs would be directly and indirectly created during the pipeline’s construction, they added that just 3,900 would be full-time. The Washington Post has also cast its doubts, estimating that actual figures could be much lower. Furthermore, once the pipeline is operating it would support just 160 jobs in the region.

Small towns

Throughout the project, small towns along the pipeline’s path will receive unprecedented business. From lodging and petrol to food and entertainment, this pattern has already emerged along the Dakota Access corridor. Of course, the boom is temporary which means that once construction is completed, business fizzles out.

Local tax revenue

As well as supporting local businesses, the projects will also increase local tax revenue. According to estimates, the Dakota Access pipeline will generate around US$55 million in property taxes, split across four states.

The American steel industry

As highlighted by President Trump, the pipelines will buttress the US steel industry. “It’s going to put a lot of workers, a lot of steelworkers back to work,” he said. Given the fact that the US steel industry has lost around 16,000 jobs in the last two years, the Dakota and Keystone pipelines would bring much needed relief.

TransCanada

Following Trump’s announcement, TransCanada company shares rose nearly 4%. Needless to say, the company can expect even bigger returns when the project is completed.

Mr. Trump

Trump is no stranger to controversy, and the pipeline project hasn’t helped his cause. As a former investor in Energy Transfer Partners, he’s come under fire for conflict of interest. Whether or not he’s in the wrong has not yet been disclosed.

Beyond fuelling cars, the Dakota and Keystone pipelines will play an important role in bolstering the US petrochemicals industry. For a closer look at how a brand new turnkey solution has transformed the industry, ‘Making Elemental Analysis of Petrochemicals as Easy as 1-2-3’ is a must read.