Free Essay Example: The Proposed Energy East Pipeline

Introduction

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The Energy East Pipeline is a proposal by TransCanada to construct a 4600 km pipeline stretching from Alberta and Saskatchewan to the Eastern side of Canada ("Energy East Pipeline Project," 2016). The project would cover the currently existing 3000 km natural gas pipeline to allow the transportation of oil. It is expected that the project would transport approximately 1.1 million barrels of crude oil per day. The project initially had a budget of around $12 billion but after an amendment to avoid sensitive environmental features it rose to $15.7 billion (Bell, 2016). The proposal was first made in 2013 to the National Energy Board. Currently, there is a plan to start it in 2018 if approved and be completed in 2020. For the project to begin, it requires the approval of the federal government, which is subject to provincial administrations’ and local communities’ acceptance. It has been facing resistance from several provincial officials in the great Montreal region, while politicians from Alberta and Saskatchewan have been in it support (The Canadian Press, 2016). The primary debate between the protestors and supporters has been if the economic benefits are more than the costs it subjects to the locals and provincial governments.

It is taking too long, and Canadians should consider accepting Energy East Pipeline because the benefits of the project outweigh the shortcomings. Delaying the project slows down economic growth and makes the suffering of the jobless longer.

Transcanada Energy East Pipeline Project

Why the Project Needs Approval

Construction of the Energy East Pipeline would create more than 14000 permanent jobs. The jobs would improve the social welfare of the employees and the general community (McCourt, 2016). Locals in provinces with high unemployment rate would primarily benefit more from the project because of the great need of employment. For example, New Brunswick, which has an unemployment rate of 8.9%, would benefit and lower the unemployment rate to almost equal or lower than the national one of 7.1%. The creation of job opportunities would be a valid reason for the construction of the pipeline. The project would also create indirect employment along the 4600 km pipeline. Employees of the pipeline would have needs that create business opportunities that would be owned by both individuals and a group of them, where several people would get employment. The jobs would vary from skilled to unskilled and would help in assisting the country in achieving the goal of reducing unemployment.

The country and the provinces would have increased earnings base. The income to the government would be in the form of taxes, rates, and fees charged for licenses to the pipeline. On top, there would be an increase in personal taxes resulting from employees from the pipeline and those indirectly employed. The income would enhance their abilities to serve the local communities better (McCourt, 2016). Provinces and the federal government would have increased income that improves their ability to develop the new and existing infrastructures. It is a target for any government either local or federal to gain economic power that would enable in the running of affairs. Therefore, Energy East Pipeline would help governments in achieving its aim in the managing activities.

Most of the oil used in some provinces, such as Quebec and other regions in Montreal area, is imported, a factor that takes away revenues from the provinces. The money spent on importing oil products benefit people in other countries, yet Canada has the third largest reserve of oil in the world, which is enough to serve its population (Canadian Association of Petroleum Producers, 2016). Construction of the pipeline would benefit Canada as a whole as it would eliminate the importation of oil as well as connecting Canada’s oil with the outside market. Provinces such as Quebec would have higher money to use internally rather than pay out to other countries if the pipeline is constructed. The whole country would have a greater chance of achieving targets of Balance of Payment because of reduced imports and higher exports that would come with the pipeline construction.

Canadian Oil Pipeline

Construction of the Energy East Pipeline would improve the transportation infrastructure of the country. It would create a safer way of transporting oil across the country than the current transportation means such as railways and roads (TransCanada Press release, 2016). The method would have increased environmental benefits as it does not produce greenhouse gasses in the course of transportation. For example, the use of roads and railways involves the production of carbon dioxide gasses that do not enhance environmental sustainability. Accidents associated with transportation of oil using rail and tankers are fatal and hazardous to human life and the environment. Pipeline with improved technology has little spillage, which has less impact on human life and environment (McCourt, 2016). The technologically managed pipelines make it safer regarding the environment and reliable means of transporting oil. The project aims at making TransCanada a global leader in the safe transportation of oil through the pipeline and has allocated a sizable amount of money to spend on ensuring the safety of the project. The local communities should have little fear on oil spillage because of the commitment of the Energy East pipeline to deal with the challenge of oil spillage.

Locally produced oil quickly meets strict rules set on environment conservation by provincial and national authorities. Construction of Energy East Pipeline would eliminate importation and make it easy in meeting environmental set standards (TransCanada Press release, 2016). Since the conserving environment is a vital goal for every province and a need for every community member, using responsibly produced oils is necessary towards meeting the expected goals. Also, with the growing corporate social responsibility, the communities would benefit from the expansion because the economic power coming with it to the oil industry would result in a higher budget in the corporate social responsibility department. The money allocated would help improve the environment and initiate programs that reduce impacts of greenhouse gasses.

The Energy East Pipeline would promote national cohesion as it would connect provinces and increase communication along its network involving several regions. Politicians from different provinces would have a lot to share regarding economic benefits from the pipeline. Local communities would provide labor and would have an opportunity to connect with employees in other provinces working for the pipeline, which would lead to improvement of the national unity through the pipeline. It would improve the connections of the regions directly and indirectly as it would make other infrastructure networks, such as roads, better as it would reduce traffic jams. Transportation of oil using roads and railways would reduce, and Canadians would have ease of moving from one province to the other.