Rigzone Examines Hypothetical KXL Construction Pay

Monday's announcement that 44 senators plan to introduce legislation to approve the Keystone XL pipeline project is further proof that the push to advance the project this year is well underway.

President Obama's recent decision to deny Keystone XL a vital permit and his judgment that the project is not in the national interest has at least delayed the creation of up to 20,000 U.S. construction and manufacturing jobs and possibly tens of thousands of additional indirect jobs. Obama made the decision at a time when, according to one measure of unemployment, more than 15 percent of U.S. workers are unemployed or underemployed.

Using figures supplied by TransCanada shortly before Obama rejected the project, Rigzone has calculated the estimated annual U.S. direct economic impact of Keystone XL in terms of construction jobs. Based on compensation figures from various sources, all 561 construction workers on one U.S. Keystone XL pipeline segment would hypothetically earn nearly $22 million in one year. The hypothetical annual pay approaches $372 million for all 17 U.S. pipeline segments.

For the complete story on how the decision has affected the economy and employment, please click here to read the article on DownstreamToday.com

Matthew V. Veazey has written about the oil and gas industry since 2000. Email Matthew at mveazey@downstreamtoday.com


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Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Steven Miller | Feb. 5, 2012
The pipeline will be built at some point. Lets let the proper reviews take place and have a route that protects national interests. As an American oil & gas worker for the past 30 years I know that accidents do occur. Lets be honest while we in the industry strive for accident / spill free transportation and processing of hydrocarbons we have not reached that goal yet. As an avid outdoors man hunting fishing hiking bird watch and photographing all of the previous I want to be sure of the invornmental impact. Secondly I seriously question the figures with respect to job creation. I believe this was used and will be used as political fodder for those people that dont know any better but, since this is an oil industry publication the a good majority of readers should know better. Steven L. Miller Ras Laffan, Qatar

Joseph Moreland | Feb. 3, 2012
Horrible decision by Mr. Obama. *The number of jobs created by this expansion can NOT be replaced by other projects *Much of the product used on the pipeline (motors & pumps, specifically) are all made in the USA (Cincinnati, OH & Portland, OR) *TCPL will build a pipeline in some direction; South or West - do we really think the environmental impact will be better should the pipeline go west? *The demand for oil in the US is still very high, and will be for years to come. The pipeline needs to be approved as soon as possible

Juan (John) Nicolaidis | Feb. 2, 2012
Dear Sirs: I know that this XL pipeline project will bring much more debates from the public in general from now on. But thinking as a common sense human being I totally agree with the execution of said project due to the following reasoning: - Environmental impact should not be affected if we will take into consideration all contingency aspects in the detailed engineering design. Even if we transport this crude oil through the sea (ship vessels) we might have environmental impacts as well. - The transportation of said oil from the tar sands belt (I understand about half a million barrels / day) will definetely move the U.S. toward an independent importing country from Mexico and sooner or later from other countries such as Venezuela or Ecuador. - Unemployment will definetely be a strategic big issue to highly be considered and hence the U.S. economy should be benefited in the same way Csnada. In other words, it is a quality mission for both nations in competing to the "win- win" basis. -------------------------------------------------------------------- Please forward this message to the public, so they can analyze and discuss further on this issue which basically amounts to my personal humble comments. Best regards, Juan Nicolaidis, B.S. / M.S. - Chem. Enggr. (Dean of Engineering - Universidad de Falc´┐Żn, Venezuela) Mobile: 58 416 263 2770

Bill Strouse | Feb. 2, 2012
Its an election year for Team Obama. Follow the money. Obamas strategic decisions are based strictly on his sources of political contributions. It would clarify matters for the American electorate were told the whole truth.

John Stagg | Feb. 2, 2012
Ill bet a six pack that "Mitty" will pass it the first day in office!!!!! What say ye???

LJ | Jan. 31, 2012
44 Senators see what Obama doesn't! Puts a little hope back in the US Senate. The bill will have to pass through the house and I wonder if the Reps will have the backbone and vision to see the good it would bring to the already hurting economy of the US.

Greg C | Jan. 31, 2012
This graph and description appears to be terribly over exaggerated. While there is no doubt that this pipeline would create many jobs in a time when we need that more than anything, however it is foolish to think that 561 people would be working on each segment all at the same time. Pipelines are constructed one segment at a time in one direction or two segments at a time heading toward a meeting point. Regardless of who is elected president this pipeline will be built in the next two or three years.

Peter Liggett | Jan. 31, 2012
I understand that this project could bring a lot of jobs, to the areas, in which it is to be built and maintained. More unions need to get involved in pushing the President Obama to approve this pipeline. On the Left there is a split between environmentalists and labor. Unions need to dominate as the United States manufacturing sector has been gutted in the last thirty to forty years. This could be a great way to start organizing in a really big way. I have recently trained in Canada, in courses involving floorhand work, and I intend on taking additional courses in mud-fluid engineering. If I work in Canada or the European Union I was told, unions dominate. This could also happen here and hopefully the unions which are involved could start a recruitment drive which could rival the gains they made in the 1930s and 1940s.

Mr. H. | Jan. 31, 2012
The Alberta Clipper pipeline project, approved by Obama in 2009, was heralded by the State Department as a job creator and a source of secure "foreign" oil. Similar in scope to the KXL, yet somehow "controversial". This administration is perplexing to say the least.

Michael Kelly | Jan. 30, 2012
I think that Obama is an "Obamination" and am looking forward to the next President of the United States. Especially in these hard times that we are all facing. Not everyone can become a scientist, doctor, or lawyer. What does that leave? The majority. Hard working Americans that wake everyday with the American dream still alive in their hearts. Regular people that just want to work, and EARN a good living. And for anyone to deny jobs, to hard working good people is a shame to this great country.

Bob W | Jan. 30, 2012
Silly and ill advised non-decision, made in the hopes of placating both sides of his Union/Environmentalist base in the hopes that it all blows over until after the US presidential election. In other words, this decision was not made with the best interests of the US in mind, it was made with the "Hope" that by not irritating his supporters from either side, there would be no "Change" in President Obama's employment status.

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