What is the net economic impact of 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.

 

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).

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(FROM “NEED FOR, COMMERCIAL FEASABILITY, AND ECONOMIC IMPACT OF THE TRANS MOUNTAIN EXPANSION PROJECT”, 2016, p. 3 and 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.

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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.

 

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How likely is an oil spill if the proposed Kinder Morgan pipeline goes ahead? Based on the Kinder Morgan's past record, an oil spill is likely to happen at least once in four years, and the proposed pipeline will make oil spills more likely. If the proposed pipeline is implemented, the likelihood of a spill in the Burrard Inlet over fifty years lies at 79-87%.

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