Current Canadian pipeline infrastructure is sufficient to meet export demand until at least 2025.

Is there an economic need for the proposed Kinder Morgan pipeline?

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This page builds on information from a Tsleil-Waututh Nation report that assesses the proposed Kinder Morgan pipeline and tanker project. You can read and download the full report here.

 

There is no economic need for the proposed Kinder Morgan pipeline. We do not need to expand current pipeline infrastructure to export the oil we have available for export.

 

There is no economic need for the proposed Kinder Morgan pipeline expansion.

 

  • Based on current supply and market predictions, current pipeline and rail infrastructure will suffice to transport oil available for export to market until at least 2025, potentially well beyond it (Allan, 2016, pp. 2-3).

 

  • Experts expect future supply to be much lower than the NEB anticipated because the price of oil is consistently decreasing (Allan, 2016, p. 2).

 

  • The NEB also did not consider how much supply will decrease once Canada implements the commitments it made to counteract climate change.
    • The Paris Agreement, ratified November 4, 2016 by 197 countries, is designed to limit climate change and can be expected to dramatically reduce fossil fuel reliance and market conditions for oil (Allan, 2016, p. 40).
    • Alberta introduced Legislation to cap greenhouse gases resulting from oil sands production to 100 MT on November 1, 2016, which can also be expected to have effects of this regard (Allan, 2016, p. 40).

 

Once Canada implements its commitments for the Paris Climate Agreement, oil supply will decrease.

 

What about the tax revenues generated from the project? 

According to CredBC, the Kinder Morgan pipeline expansion will only generate $9.86 million per year for British Columbia. That’s 0.7% of BC’s corporate tax revenues, and 0.05% of the overall provincial tax revenues. These are both incredibly small amounts and do not make any significant contributions to the economy. The negative financial, environmental, cultural, and health impacts of the project vastly outweigh the economic gains that would be made should the pipeline be expanded.

We have the chance to focus on a sustainable economy by stopping the proposed Kinder Morgan pipeline. Click here to learn more.


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Does British Columbia rely on the jobs created through the proposed Kinder Morgan pipeline? British Columbia does not rely on the jobs created through the proposed Kinder Morgan pipeline. Kinder Morgan promises that the pipeline would create 50 permanent jobs in British Columbia, and 40 in Alberta. Kinder Morgan has been unclear about how many temporary jobs would be created for construction.
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What You Can Do Find out what you can do to stop the proposed Kinder Morgan pipeline. Sign up to become a friend of the Sacred Trust, donate, or write a letter to the editor of your local newspaper.
Is there a market for the proposed Kinder Morgan pipeline’s products? There is no market for the products proposed to be shipped on it. We do not need to expand current pipeline infrastructure to meet the demand for Canadian diluted bitumen (dilbit). Neither the NEB nor Kinder Morgan tested market facts to determine whether markets exist, or whether there is potential to develop them.

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