Keystone XL Pipeline Still a Bad Idea
On Friday, March 24, 2017, the Trump Administration authorized the final permit to allow the Keystone XL pipeline to be completed. ASBC continues to oppose the pipeline and issued this statement:
“Keystone XL is still a bad idea for the U.S. economy and business, despite what the fossil-fuel industry says,” said ASBC’s CEO David Levine. “It's not economically viable without government support and would impose substantial costs on the economy by producing dirty, expensive oil and increasing emissions that are driving climate change. Instead of Keystone XL we need to invest in clean energy, a proven job creator.”
In 2013, ASBC sent a letter to then-Secretary of State John Kerry, signed by more than 1,000 businesses, stating the business case for denying approval of the project. The pipeline would transport tar-sands oil from Canada to processing facilities along the U.S. Gulf Coast.
Canadian tar-sands oil is considered the dirtiest oil on earth and bringing nearly a million barrels per day into the U.S. would have negative economic, environmental, health, and security consequences for our nation.
In business terms, the market would not be able to bear the true public cost of the pipeline without major government subsidies. If the private sector were to internalize the full cost, including the setting up of a fully adequate sinking fund against damage from spills, land despoliation, water clean-up, medical costs, carbon emissions, and other damages, it would not be economically feasible.
The impacts of climate change (including droughts, floods, and extreme weather), oil spills, worker and community health problems, and environmental degradation are all bad for business. They’re especially bad for the small to mid-size businesses that create the most jobs in our country. Cancelling the Keystone XL Pipeline and moving toward a clean-energy economy would be a multiple “win”—a win for our businesses, farms, the environment, public health, and our long-term energy security.