In Rejection Letter, State Department Concludes Purported Keystone XL Benefits Are Myths

In a Congressionally mandated report on the reasons for rejecting the Keystone XL tar sands pipeline, the Department of State concludes that the Keystone XL tar sands pipeline has little to do with energy security or the economy. The pipeline, of great interest to the foreign tar sands company TransCanada and its investors, would have little benefit for Americans and many risks. The Keystone XL pipeline just won’t change the economics of oil dependence in the United States:

Regarding economic, energy security, and trade factors, the economic analysis in the final EIS indicates that, over the remainder of this decade, even if no new cross-border pipelines were constructed, there is likely to be little difference in the amount of crude oil refined at U.S. refineries, the amount of crude oil and refined products such as gasoline imported to (or exported from) the United States, the cost of crude oil or refined products in the United States, or the amount of crude oil imported from Canada. . . .

The analysis from the final EIS, noted above, indicates that denying the permit at this time is unlikely to have a substantial impact on U.S. employment, economic activity, trade, energy security, or foreign policy over the longer term.

The State Department concludes that “it would not be reasonable to suggest the pipeline would cause an increase in employment or other economic activity by increasing crude oil imported into the United States.”


Instead of the 100,000 or more jobs that proponents like the U.S. Chamber of Commerce and Rep. John Boehner tout, there would only be the “approximately 5,000 to 6,000 direct construction jobs in the United States that would last for the two years that it would take to build the pipeline.”

Download the complete State Department document.