Dakota Access Pipeline: Economic Impact To Date

Now that construction of the 1,172-mile Dakota Access Pipeline is complete, it’s only a matter of time before the line begins transporting crude oil from North Dakota’s Bakken region to key refining markets.

First announced in 2014, this $3.78 billion infrastructure project has already resulted in countless economic and fiscal benefits for communities throughout the Midwest. Whether it was as big as a multi-million dollar purchase from an American heavy equipment manufacturer like John Deere or a record setting season for a family-owned ice cream store, it is clear that this project made a difference in the lives of many.

“The Dakota Access Pipeline has already meant jobs for thousands of Midwesterners and billions of dollars in economic activity,” said MAIN Coalition spokesman Craig Stevens. “Siting, constructing, and operating this pipeline is a testament to the expertise and dedication of community leaders, government officials, engineers, and laborers – all working together to develop and safely transport our nation’s energy resources. Now that the pipeline is operational, it will help fuel our nation’s economy for decades to come.

dakota access pipeline

“We are hopeful that President Trump continues to alleviate regulatory hurdles and uncertainty, allowing our nation’s infrastructure to grow and our manufacturing and agricultural sectors to flourish,” Stevens added.

Environmentally sensitive, economically beneficial, and vital to our nation’s energy future – projects like the Dakota Access Pipeline are critical to creating jobs and strengthening our economy.

*All data was sourced from either the Strategic Economics Group or DAPLPipelineFacts.com.

No More Keystone Capers

President Trump is making short work of campaign promises, and on Tuesday he signed executive orders reviving the Keystone XL and Dakota Access pipelines. The resurrection is good news for the economy, but one question is whether he’ll sink the projects with his protectionist impulses.

Mr. Trump signed an executive order inviting TransCanada to apply again for a permit for the Keystone XL pipeline, which the Obama Administration rejected to indulge the anti-carbon obsessions of Democratic campaign donors. Another Trump directive aims to expedite the Dakota Access pipeline, which is 90% finished but was halted by President Obama amid protests. A federal judge ruled that the government had met its legal obligations, but the Obama Administration suspended work anyway.

Such carve outs for progressive constituencies are one reason voters rejected Democrats in November, and the pipelines promise broader prosperity. Keystone is predicted to spin off 20,000 construction and manufacturing jobs, many of them to be filled by union workers, and add $3 billion to GDP. The pipeline could move 830,000 barrels a day along the route from Alberta to Nebraska; up to 100,000 would come from North Dakota, where a glut of crude has to travel by rail to reach refineries built to process it. The efficiencies will ripple across the oil and gas industry.

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Dakota Access Pipeline Will Provide Jobs, Energy Stability and Security

My experience within the U.S. government and the International Energy Agency has focused on global energy markets, energy policy and national security. I continue to follow the development of our nation’s energy infrastructure projects with a close eye.

Over the last several months I have been deeply concerned by the slowdown in developing the energy infrastructure needed to take advantage of the energy renaissance underway in the upstream oil and gas industry.

One example, although by no means the only infrastructure delay, is the result of ongoing protests and the Obama administration’s recent action over one such project, the Dakota Access pipeline.

The efforts against the Dakota Access project should serve as a powerful cautionary tale of the dangers of energy policy driven by ideology rather than economic reality. Continued delay of projects like Dakota Access could have a chilling effect on expanding our nation’s energy infrastructure and on efforts to continue bolstering American energy security.

Access to affordable and dependable energy sources is critical for energy security and economic prosperity. Potentially high energy costs and U.S. reliance on oil from unstable regions of the world undermine U.S. foreign-policy flexibility and economic competitiveness.

One of the many facts ignored by activists is that oil produced in the Bakken region and other highly prospective areas will play an important role in our energy production for decades to come.

While I support balanced and comprehensive energy policies that include responsible development and utilization of all energy resources, both traditional as well as alternative sources, the fact is we’re just not there yet and we need to recognize the long lead times involved in these capital intensive projects. The Energy Information Administration projects that by 2040, oil, natural gas and coal will provide about 75% of America’s energy needs — a relatively small change from previous projections.

 

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MAIN Coalition Members Speak Out on USACE Indecision

In light of yesterday’s announcement from the U.S. Army Corps of Engineers, MAIN Coalition Members and Advisors spoke out on the decision to further delay the state-of-the-art Dakota Access Pipeline:

James “Spider” Marks, Major General (US Army retired), President of The Marks Collective
“The announcement today will lead to weeks of increasingly dangerous confrontations between police officers and professional agitators. The safety of local police and security forces, the citizens of North Dakota, workers on the ground, Tribal members, and the protestors themselves are now at further risk. Moreover, the continuing delay will push into the North Dakota winter, endangering the children and elderly who have chosen to camp out near Cannonball.”

“The “interests of individuals living in the general area of the right-of-way” that the U.S. Army Corps cites in their statement would best be served by rapid conclusion of this extended process and allowing the project to proceed. Since the Obama Administration intervened in September, more than 400 people have been arrested, hundreds of law enforcement pulled off other jobs to address the violent nature of some protests, and cattle and local livestock slaughtered. The 90-120 days of activity to finish this legally permitted project is critical to putting this community back together and restoring peace. This effort is motivated by a strategic imperative of enhancing and furthering national energy independence. This project has been as thoroughly vetted as any in history. Additional delays seem wasteful and solely politically motivated.”

Ron Ness, President, North Dakota Petroleum Council
“We are troubled by the decision from the U.S. Army Corps of Engineers, which directly contradicts the will of four separate state governments, an original, thorough assessment of the project by the federal government, as well as two federal court rulings in favor of completing construction.

The risk of a potential spill has been thoroughly studied and extensive safety measures have been implemented to ensure the safe operation of the pipeline. By further delaying the Dakota Access Pipeline, the Corps of Engineers will only bring more instability to North Dakota, as protesters continue to threaten private property and workers along the pipeline route.”

Andy Peterson, President, North Dakota Chamber
“The Obama Administration’s decision to unnecessarily further halt the Dakota Access pipeline, in the name of additional consultation, runs counter to the thorough and careful process undertaken by the men and women of the United States Army Corps of Engineers and North Dakota’s Public Service Commission. Two federal courts have upheld the process and agreed that the consultative process was thorough and complete. In addition, careful consideration was taken to the routing location of the pipeline and extensive safety mechanisms were included in its design to ensure the safe operation of the Dakota Access Pipeline.

Our state deserves the opportunity to build and operate this project – to delay the project because of a 1,000 feet crossing – is unfair to North Dakotans who rely on our state’s energy resources to fuel and drive our economy. The Administration should strongly reconsider their decision.”

Mike Ralston, President, Iowa Association of Business and Industry
“I am disappointed by the decision to further delay this important national energy infrastructure project. Dakota Access has undergone extensive review and consultation at both the state and federal levels. The delay to a project that is already 84% complete is unfair to our state, the men and women building the project and all those involved from the top to the bottom of the supply chain. We have already seen the extent to which additional delay can have – violence, destruction of equipment, and threats against the individuals building or supporting the project. Enough is enough – the project should not be delayed any further.”

Bill Gerhard, President, Iowa State Building and Construction Trades Council
“The Obama administration’s decision to continue delaying the completion of the Dakota Access Pipeline threatens the safety and jobs of thousands of Americans and jeopardizes billions of dollars in future development. Dakota Access has lawfully sought and received all of the necessary state and federal approvals, but now, after the project is over 84 percent complete, the White House wants to change the rules. This unprecedented action is harmful to American workers, businesses, and all those who depend on reliable infrastructure.”

Ed Wiederstein, Chairman, MAIN Coalition
“The decision by the U.S. Army Corps of Engineers to further delay the Dakota Access Pipeline and not grant the final easement today is extremely disheartening. This pipeline was thoroughly reviewed for nearly two years by the federal and four state governments, including by the Corps of Engineers.
This political decision to postpone construction jeopardizes the safety of all those who live and work near the project. The MAIN Coalition continues to stand for the approval of the Dakota Access Pipeline in accordance with the will of the states, the original assessment by the Corps of Engineers, and the rulings of two United States Federal Courts.”

Chad Carter, IUOE Local 234
“The announcement today by the U.S. Army Corps of Engineers only threatens further instability and continued protests on the Dakota Access Pipeline job sites, where hard working Americans are being threatened with violence just for showing up to work.”
“This decision will only further enflame protesters who have no regard for the rule of law, and will continue to intimidate workers, threaten acts of violence, and resist lawful removal by police. This decision undermining of the regulatory review process represents a threat to the future of infrastructure projects, and the future of American jobs for years to come.”

Dawna Leitzke, Executive Director, South Dakota Petroleum and Propane Marketers Association
“Today’s decision to again delay the completion of the Dakota Access Pipeline represents an unprecedented step in the wrong direction for the future of American energy independence. This fully approved and permitted project is over 80 percent built, yet Washington has now decided to upend existing law at the peril of American workers and businesses.”

Workers Lose If Pipeline Protesters Get Their Way

According to your article, the anti pipeline protesters camping out in North Dakota seem to be having a great time [What’s next for anti-pipeline camp? Oct. 16] Free food and shelter in a Woodstock-like environment, with their parents probably paying their way. We need to get some bands up there like the Grateful Dead, along with a large cargo container of free condoms. There must be a taxpayer-funded program for that. Continue reading…

MAIN Coalition Statement Regarding Court Ruling, Tribal Consultations

Today, MAIN Coalition spokesman Craig Stevens released the following statement discussing the U.S. Court of Appeals decision to deny the Standing Rock Sioux Tribe’s injunction request as well as this evening’s tribal listening session in Phoenix, AZ:

There is no reasonable reason for the federal government to continue its delay of the necessary easement to allow for the ultimate completion and operation of the Dakota Access Pipeline. The Army Corps of Engineers and Dakota Access, LLC, have labored for more than two years, meeting with hundreds – if not thousands – of individuals and groups to plot out the safest, most sensible route for the pipeline.

The 1,172 mile pipeline has been approved by four states and the federal government and has received all necessary permits and easements, except for the mere formality of an easement for approximately 1,100 feet abutting and under Lake Oahe which would parallel an existing natural gas pipeline and which has already been approved by the Army Corps of Engineers.

It is nearly 60 percent built and supports more than 8,000 jobs, at a cost of more than $1.6 billion so far.  And, once operational, it will be among the most technologically advanced pipelines in the world.

Now, two courts have agreed that the Army Corps followed the letter of the law: first Judge Boasberg in his initial decision and then the Appellate Court in its order.  Additionally, considering the painstaking review and accommodations that were made on the final pipeline route, we would argue that the Corps and company followed the spirit of the law and the intent of the lawmakers.

We recognize the importance of consulting with all interested parties and applaud the government for holding its meetings with tribal leaders to discuss appropriate processes for future projects.  However, the government cannot reasonably say that any disagreement equates to a veto.  If that becomes the standard then no infrastructure project of consequence will ever again be completed in this country.

Our nation is a nation of laws which includes regulations that were written to facilitate life in a civilized society.  Regulations are intentionally apolitical to allow businesses and individuals to live with certain rules and expectations outside the bounds of political discourse.  If we can no longer rely on the certitude of duly passed and implemented laws and regulations, it could ultimately lead to chaos; or, at the very least, an understandable confusion among American business leaders and citizens as to which laws and regulations are meaningful and which can be ignored.

The last administrative action on the final 1,100 feet of the Dakota Access Pipeline now rests with the Obama Administration.  We hope and expect that they do the right thing: issue the easement for construction under Lake Oahe without further delay.  To do otherwise would undermine our nation’s regulatory regime and chill American infrastructure development, costing Americans their jobs and, ultimately, our nation its progress.

Don’t Ignore Labor Support for Dakota Access

For more than two years, the five skilled craft unions have shown their support for the Dakota Access Pipeline as it was reviewed, exhaustively vetted, and then approved by four states and federal regulators.  And recently, the AFL-CIO lent their support for the project as well.

The members of the labor organizations that support and will build the Dakota Access Pipeline deserve to have their voices heard.  The admiration should allow the Dakota Access Pipeline to finish construction.

Energy Supply Chain Industries, Workers Urge Dakota Access Completion

A coalition of some of the nation’s top energy supply chain industries and workers has come together to urge President Obama to allow the Dakota Access Pipeline (DAPL) to be completed. In a new letter, leaders of 18 different organizations called on Obama to support infrastructure development, quoting his 2015 State of the Union Address that called for just that.

“21st century businesses need 21st century infrastructure ‐‐ modern ports, stronger bridges, faster trains and the fastest internet. Democrats and Republicans used to agree on this,” President Obama said.

Furthermore, the letter notes the extensive permitting process that DAPL underwent as well as the monumental amount of capital the project has already injected into the U.S. economy.

Wednesday’s letter comes just two days after the heads of five trade unions called on Obama to allow the project to move forward, saying that current delays have already resulted in lost jobs and threaten many more.

Pre-Debate Statement from the MAIN Coalition

In just a few hours Secretary Clinton and Mr. Trump will engage in their first presidential debate.  Among the topics they are expected to discuss are their plans to strengthen our nation’s economy. In advance of their debate, MAIN Coalition spokesman Craig Stevens issued the following statement:

As Secretary Clinton and Mr. Trump discuss their visions to support our nation’s economic prosperity, there will be one area that they both can agree: encouraging private infrastructure development.  There is no debate that our nation’s infrastructure needs updating; and there are American companies ready to employ American skilled labor to get the job done right.  But companies need regulatory certainty in order to dedicate the financial resources necessary to complete these needed massive projects.

Right now, a stretch of the Dakota Access Pipeline is in limbo because – despite being fully approved by the relevant four states and the U.S. Army Corps of Engineers and being more than 60 percent complete – the Administration has decided to reevaluate the regulatory process.  This is indeed troubling and could have a chilling effect on private infrastructure development as companies, who have followed the process correctly and done everything right, risk having their projects stopped right in the middle construction.

This is no way to run an economy.

The members of the MAIN Coalition and all Americans will be listening to both candidates tonight to see who articulates the best vision for our nation’s economy, including the best way to support necessary U.S. infrastructure development.

Hundreds Gather In Support Of Dakota Access Pipeline

dakota access pipelineHundreds of union members gathered outside the Iowa Utilities Board (IUB) in Des Moines this morning to show support for the Dakota Access Pipeline. At issue, a handful of opponents threatening a vital infrastructure project already well on its way to completion.

Earlier in the day, Ed Wiederstein, chairman of the MAIN Coalition, said in a statement that he was “dismayed” by continued efforts to derail a project that is already employing thousands of Iowans. “It is completely ludicrous the Dakota Access Pipeline will once again be brought to the Iowa Utilities Board for review,” he said. “Opponents of Dakota Access want to keep changing the rules after a decision has been made.”

“It is completely selfish of these individuals to threaten an entire workforce with termination solely because they want to throw a wrench in the regulatory system,” said Bill Gerhard, president of the Iowa State Building and Constructions Trade Council. “Construction should be allowed to take place, as it was before, because the letter of the law was followed and this project was approved by the State of Iowa.”

Inside, the lawyers for Dakota Access asked the commissioners to reject a motion that would halt construction on 17 tracts of land, saying that landowners have already had numerous opportunities to voice concerns and that the IUB already made their decision in March. Attorneys also added that nearly 22 percent of the pipeline in Iowa was already built. The board adjourned at 1 p.m. following several hours of debate and gave no indication when it would vote other than it meet again Friday afternoon.

Desperate attempts like this to undermine the regulatory process and hinder the construction of valuable infrastructure are in nobody’s best interest. The Dakota Access Pipeline has sought and received all of the required state and federal regulatory approvals and is now well on its way to being operational.