Derrick Digest for March 31, 2017

Keystone XL's numbers a boon for GDP in Alberta

The Derrick Digest is a weekly collection of curated content, based on events from across the oil and gas industry, that caught our eye at Pennine Petroleum Corporation.

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MARCH 31, 2017

It’s gotten the go-ahead from the U.S. State Department, but TransCanada Corp. has a few more pieces of the puzzle to assemble before it can start building Keystone XL. When completed, the 36-inch-diameter pipeline will carry crude oil from Hardisty, Alta. to Steele City, Neb. Here are some of the numbers in play for the project.

A piece in the Financial Post pegs the total cost of Keystone XL at $8 billion US, but notes that is based on 2014 figures. TransCanada’s Energy East, estimated at $12 billion in 2015, will likely cost in the neighbourhood of $15.7 billion following regulatory delays and route changes.

Alberta isn’t the only province predicted to reap the economic rewards of the project. A 2012 report by the Canadian Energy Research Institute predicted that worker compensation in Ontario — largely in its manufacturing sector — would receive a $10.68 billion bump between 2011 and 2035 if the project was approved. B.C. would benefit to the tune of $4.58 billion in employee compensation while Quebec would see a $2.27 billion increase.

But it’s been a tough waiting game for TransCanada, which filed its application for Keystone in September 2008. It took 3,108 days for the project to get the green light. It was approved by the U.S. Senate in February 2015, but was eventually vetoed by then president Barack Obama.