Impolitical: The Keystone jobs

I keep hearing people saying Obama still might approve Keystone. And who knows. But he’s sure not sounding like he’s going to do it at moments like this: If [Congressional Republicans have] got a better plan to create jobs rebuilding our infrastructure or to help workers earn the high-tech skills

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Impolitical: The Keystone jobs

I keep hearing people saying Obama still might approve Keystone. And who knows. But he’s sure not sounding like he’s going to do it at moments like this:

If [Congressional Republicans have] got a better plan to create jobs rebuilding our infrastructure or to help workers earn the high-tech skills they need, then they should offer up these ideas. But I’ve got to tell you, just gutting our environmental protection, that’s not a jobs plan. Gutting investments in education, that’s not a jobs plan. You know, they keep on talking about an oil pipeline coming down from Canada that’s estimated to create about 50 permanent jobs. That’s not a jobs plan.

That was a speech he gave yesterday. Obama gets the 50 number from a Cornell study that says this on job creation:

In this context, it is also important to consider that almost all of the jobs (direct, indirect
and induced) associated with Keystone XL will, of course, also be temporary. The operating
costs for KXL are very minimal, and based on the figures provided by TransCanada for the
Canadian section of the pipeline, the new permanent US pipeline jobs in the US number
as few as 50. The other operating expenditures (for materials, supplies, services, electric
power, property taxes, etc.) would comprise the bulk of operating expenses and would also
have some job impacts. So considering a broad range of spin-offs, operating expenditures
would have job impacts in the order of around 1,000 per year.

It is unfortunate that the numbers generated by TransCanada, the industry, and the
Perryman study have been subject to so little scrutiny, because they clearly inflate the
projections for the numbers of direct, indirect, and long-term induced jobs that KXL might
expect to create. What is being offered by the proponents is advocacy to build support for
KXL, rather than serious research aimed to inform public debate and responsible decision
making. By repeating inflated numbers, the supporters of KXL approval are doing an
injustice to the American public in that expectations are raised for jobs that simply cannot be
met. These numbers—hundreds of thousands of jobs!—then get packaged as if KXL were a
major jobs program capable of registering some kind of significant impact on unemployment
levels and the overall economy. This is plainly untrue.

Current Canadian government advertising that can be seen on U.S. websites is touting 40,000 plus jobs that the pipeline will support during a two year construction period. More on that advertising, said to total about $16 million, here.

(h/t)

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Impolitical: The Keystone jobs

I keep hearing people saying Obama still might approve Keystone. And who knows. But he’s sure not sounding like he’s going to do it at moments like this: If [Congressional Republicans have] got a better plan to create jobs rebuilding our infrastructure or to help workers earn the high-tech skills

Continue reading

Impolitical: Obama on Keystone

In an extended interview published in the New York Times today, Keystone was raised with Obama: NYT: A couple other quick subjects that are economic-related. Keystone pipeline — Republicans especially talk about that as a big job creator. You’ve said that you would approve it only if you could be

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Impolitical: Obama on Keystone

In an extended interview published in the New York Times today, Keystone was raised with Obama: NYT: A couple other quick subjects that are economic-related. Keystone pipeline — Republicans especially talk about that as a big job creator. You’ve said that you would approve it only if you could be

Continue reading

Impolitical: Obama on Keystone

In an extended interview published in the New York Times today, Keystone was raised with Obama:

NYT: A couple other quick subjects that are economic-related. Keystone pipeline — Republicans especially talk about that as a big job creator. You’ve said that you would approve it only if you could be assured it would not significantly exacerbate the problem of carbon in the atmosphere. Is there anything that Canada could do or the oil companies could do to offset that as a way of helping you to reach that decision?

MR. OBAMA: Well, first of all, Michael, Republicans have said that this would be a big jobs generator. There is no evidence that that’s true. And my hope would be that any reporter who is looking at the facts would take the time to confirm that the most realistic estimates are this might create maybe 2,000 jobs during the construction of the pipeline — which might take a year or two — and then after that we’re talking about somewhere between 50 and 100 [chuckles] jobs in a economy of 150 million working people.

NYT: Yet there are a number of unions who want you to approve this.

MR. OBAMA: Well, look, they might like to see 2,000 jobs initially. But that is a blip relative to the need.

So what we also know is, is that that oil is going to be piped down to the Gulf to be sold on the world oil markets, so it does not bring down gas prices here in the United States. In fact, it might actually cause some gas prices in the Midwest to go up where currently they can’t ship some of that oil to world markets.

Now, having said that, there is a potential benefit for us integrating further with a reliable ally to the north our energy supplies. But I meant what I said; I’m going to evaluate this based on whether or not this is going to significantly contribute to carbon in our atmosphere. And there is no doubt that Canada at the source in those tar sands could potentially be doing more to mitigate carbon release.

NYT: And if they did, could that offset the concerns about the pipeline itself?

MR. OBAMA: We haven’t seen specific ideas or plans. But all of that will go into the mix in terms of John Kerry’s decision or recommendation on this issue.

Fascinating response from Obama there. First, he’s not buying the inflated jobs numbers related to Keystone. Recall Harper’s 2012 sit down session with an American think tank where he claimed that Keystone would be responsible for about 30,000 jobs. Obama is where the U.S. State Department has been, that the job benefits are on a much lower scale.

Also note those remarks that show he’s sticking to the principle that carbon release is a key decision making component for him. That sets approval at a very high bar. He’s putting the environmental consideration at the fore.

Then the bit about Canada doing more to mitigate carbon release. The Harper government will likely see this as an opening but it’s also not very welcoming language to a government that has tried to delay and skate on carbon emissions. It sounds like a stick that Obama is going to deploy.

It is promising though for those who care about the environment and think that a stick is just what the Harper government needs.

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