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The Keystone Pipeline Debate: An Alternative Job Creation Strategy

By Kristen Sheeran, Noah Enelow, Jeremy Brecher, and Brendan Smith - Economics for Equity and the Environment and Labor Network for Sustainably, November 5, 2013

The Keystone XL pipeline has been touted as a means to address America's jobs crisis. But how does its
job creation compare to other possible projects?

This study compares the jobs that would be created by the KXL pipeline to the jobs that could be created by water, sewer, and gas infrastructure projects in the five states the pipeline crosses.

It finds that meeting unmet water and gas infrastructure needs in the five relevant states along the KXL pipeline route will create:

  • More than 300,000 total jobs across all sectors;
  • Five times more jobs, and better jobs, than KXL;
  • 156% of the number of direct jobs created by Keystone XL per unit of investment.
  • President Barack Obama and others have criticized the KXL pipeline for its meager promise of 50 to 100 longer‐ term jobs. In contrast, water infrastructure operation and maintenance in the five relevant states alone will create 137 times as many direct long‐term jobs, and over 95 times more total long‐term jobs, than Keystone XL.

Proponents of KXL maintain it will be built by private investment without public subsidy. But the oil
refineries that will use KXL oil, along with the rest of the oil industry, receive large government subsidies. All of the infrastructure work described in this study can be financed just by closing three Federal tax loopholes for fossil fuel companies. Indeed, taking just one tax subsidy now received by the
refineries that would use KXL oil and using it instead for water infrastructure would create as many jobs as the KXL pipeline.

Download the complete report (PDF) here.

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.