Why did the NEB approve the Kinder Morgan pipeline if its economic impact is negative?



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.


Contrary to the National Energy Board (NEB) report released in May, 2016, there is no economic need and for the proposed Kinder Morgan pipeline, and economic benefits do not outweigh economic risks.

The economic benefits of the proposed Kinder Morgan pipeline do not outweigh the risks.

  • Experts like economist Robyn Allan show that the NEB’s conclusions are faulty, as research was based on a flawed methodology and outdated information. (Allan, 2016, p. 1-2).
    • Economic and political circumstances, regarding supply projections and Canada’s relationship with climate change, have changed significantly since the NEB issued its May 2016 report. These changes must be considered by the NEB’s conclusions on the need for, commercial feasibility of, and financial impacts of the Project (Alla, 2016, p. 1).


  • The NEB did not implement its own definition of the public interest to assess the economic impacts of the Project.
    • It did not consider the economic interests of all Canadians and refused to assess the environmental and socio-economic effects associated with upstream activities, the development of oil sands, or the downstream use of the oil transported by the pipeline (Allan, 2016, p. 6).
    • Instead, the NEB limited its economic review to one of private financial interests of Trans Mountain and Western Canadian crude oil producers (Allan, 2016, p. 6).

The NEB’s research was based on flawed methodology and outdated information.

  • The NEB did not consider the potential negative economic impacts of the proposed pipeline for example to Canadian refineries, Canada’s rail and resource sectors, as well as the tourism and commercial fishing industries (Allan, 2016, p. 7).

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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