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Pres­ident Joe Biden’s can­cel­lation of the Key­stone XL Pipeline will cause energy costs to increase, numerous critics say. 

The Key­stone XL Pipeline was intended to transport oil from Canada’s oil sands to refineries in the gulf coast. It was approved by former Pres­ident Trump in 2017, but revoked by Pres­ident Biden in January. According to the Battle Creek Enquirer, it would have trans­ported 30,000 barrels of oil a day 1,700 miles from Alberta, Canada to Gulf of Mexico refineries.

Director of Eco­nomics and Pro­fessor of Political Economy Gary Wolfram told The Center Square that the can­cel­lation will increase fuel and petroleum deriv­ative prices across the nation. 

“The halting of the Key­stone pipeline is going to increase the cost of natural gas and oil … that will result in less output,” Wolfram said.

Products that will have increased prices as a result of the can­cel­lation include “petro­chemical products range from gen­er­ating heat, elec­tricity, inputs in plastics, syn­thetic mate­rials and asphalt, per­sonal pro­tective equipment, COVID-19 vaccine vials, and even timed-release cap­sules in aspirin,” according to Wolfram. 

The Key­stone Pipeline would have resulted in many eco­nomic gains in the U.S. if it had been allowed to continue. 

In an interview with Battle Creek Enquirer, Wolfram said that oil exports from the pipeline would have increased the GDP, reduced the trade deficit, and min­i­mized the U.S.’s use of foreign oil. Increased oil supply would have also stim­u­lated the economy. 

“As oil is an input into many products besides gasoline, and as gasoline and diesel fuel are inputs into many goods and ser­vices, in par­ticular the trans­portation of goods, the building of the Key­stone pipeline would have increased overall eco­nomic activity in the U.S,” Wolfram said. 

Addi­tionally, the Key­stone Pipeline would have increased con­struction jobs. According to Fox News, 11,000 jobs would have been created in 2021, 8,000 of which would have been union jobs. Wolfram told the Col­legian that the pipeline’s can­cel­lation will cause oil trans­portation to be done less effi­ciently, such as by trains or trucks, increasing chances of oil spillage and raising emission outputs.

“As for its effect on Hillsdale County, the increase in the price of oil, natural gas, and products derived from them will obvi­ously affect Hillsdale County as it will the rest of the country,” Wolfram said.