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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Is there an economic need for the proposed Kinder Morgan pipeline? 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. Based on current supply and market predictions, current pipeline and rail infrastructure will suffice
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.
How would Orcas be impacted by the proposed Kinder Morgan pipeline? Marine Mammals, including orca, are at risk in the event of an oil spill: Southern resident killer whales in British Columbia are considered endangered species, while northern whales are considered threatened but recovery plans in place are weak. Many marine mammals, including orca reside in or visit Burrard Inlet.
What is Kinder Morgan’s record of spills? Since the 1960s, the longest period of time the Trans Mountain Pipeline has gone without a spill is approximately four years. Most of these spills have been of crude oil. Crude oil spills have dire and long-lasting impacts on the environment and are incredibly difficult to clean.

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