What is the net economic impact of the proposed Kinder Morgan pipeline?



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.


The proposed Kinder Morgan pipeline would have a negative economic impact. In fact, the proposed pipeline is a net economic risk and cost to the Canadian economy, which would become a burden to the Canadian public (Allan, 2016, p. 4).




The net economic impact of the proposed pipeline becomes negative when:

  • A fulsome scope of issues is considered, which extends beyond the private economic benefits of crude oil producers and includes direct economic costs and opportunity loss;
  • Reliable and accurate pipeline and marine toll rates inform the analysis for both the Project and rail transport relied upon in the absence of the Project;
  • Supply projections that reflect current market conditions and climate change commitments are developed and adopted;
  • Crude oil prices based on market conditions are adopted;
  • Realistic expectations regarding market demand and potential market penetration inform the assessment;
  • Appropriate models reflect economic impact are relied upon; and
  • Double counting of benefits does not take place.



The proposed pipeline would be a net negative economic cost, as it would likely not be used and useful over its lifetime: Current market conditions suggest that the proposed pipeline would be run at below its break-even point or even below its shutdown point (Allan, 2016, p. 32).


Because the proposed pipeline project would have a net negative economic impact, the project’s financial risks outweigh the time and money it would take to be implemented.

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


What Else Can I Do to Help?

Spread the Word

When people see other people they know or can relate to expressing their views, it can make a big difference.

Spread the word!



You might also be interested in

What would the impact of an oil spill in Burrard Inlet be? Every inch of Burrard Inlet, including the Indian Arm, would likely be affected by an oil spill. Such an incident would also affect Tsleil-Waututh cultural activities. Within 48 hours, 90% of the oil would strand on our beaches and foul up to 25 kilometres of shoreline ...
Why did the NEB approve the Kinder Morgan pipeline if its economic impact is negative? Acoustic disturbance: Increased tanker traffic will cause acoustic disruption underwater, and cause marine animals to change their behaviour -- especially culturally important species such as whales and blackfish. For more information, see our page on the pipeline's impacts on whales.
Will landowners along the pipeline route be affected? The Trans Mountain Pipeline project has the potential to affect thousands of landowners along the proposed route. The proposed route would run from the tar sands in northern Alberta through Jasper National Park. From there it would enter the Lower Mainland of British Columbia ...

Become a friend of the Sacred Trust

Stay informed about the Kinder Morgan proposal and don’t miss important updates from the Sacred Trust team.
  • .

Got a question?