As the Canadian government awaits the final stamp of approval for the Keystone XL, U.S. President Barack Obama is casting doubt over U.S. job creation figures being touted for the cross-border pipeline.
In an interview with the New York Times posted on their website Saturday, Obama rejected arguments put forth by Republicans that the $7.6-billion TransCanada Corp. project would spur significant -- or sustained -- job growth in the U.S.
“Republicans have said that this would be a big jobs generator,” Obama said. “There is no evidence that that’s true.
“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 jobs in an economy of 150 million working people.”
Obama further characterized the potential for 2,000 initial jobs as a “blip relative to the need.”
The U.S. president’s figures are quite a contrast from the job-creation numbers projected by proponents of the project.
The ruling Conservative government has long said the pipeline, which would transport millions of barrels of oilsands bitumen a week from Alberta to Texas refineries, would be in the national interest of both U.S. and Canada, particularly in terms of jobs creation and increased government revenue.
In May, during a visit to New York City, Prime Minister Stephen Harper himself told an audience that Keystone XL would create 40,000 U.S. jobs over the life of the project.
Green Party Leader Elizabeth May, however, suggested Harper’s figures are bloated.
“That’s one of those outrageous figures that’s thrown around, but as President Obama said, there’s no evidence for that,” she told CTV News Sunday.
TransCanada estimates 13,000 jobs in America would be created by the pipeline project, and potentially hundreds of thousands of jobs in the longterm north of the border.
The company stands by the numbers.
“We’re a pipeline company, we build infrastructure, there’s no reason for us to inflate or exaggerate our numbers,” said company spokesperson James Millar.
According the New York Times, Obama also disputed the suggestion that the pipeline would help lower retail gasoline prices, as most of the oil would be refined and then exported.
Opponents are urging Obama to reject the pipeline, saying it would negatively impact the environment.
Obama has said in the past that he needs assurance that building the northern portion of the Keystone XL will not result in greater greenhouse gas emissions; he has said that confirmation is critical in determining whether the U.S. decides to move forward with the project’s approval.
Pipeline supporters say it would not add to greenhouse gas emissions, and would be beneficial for national security because Canadian oil would replace the need to import from less stable countries, namely in the Middle East.
With files from CTV’s Daniele Hamamdjian
