A number of U.S. firms joined TransCanada Corporation (TSX, NYSE: TRP) today in stating how they will create thousands of American jobs building the largest privately financed infrastructure project on the books right now. The companies came forward to reinforce the fact that construction of the privately financed $7 billion oil pipeline means work for their employees during a period when the American economy needs jobs - 20,000 jobs in construction and manufacturing. For many, these jobs are a lifeline.
MPS Constructors, LLC (a joint venture formed by three of the largest pipeline builders in the United States including Michels Corporation, Price-Gregory International and Sheehan Pipe Line Construction Company), Michels Corporation (under a separate contract) and Sunland Construction Inc. (also under a separate contract) represent the American contractors who have been awarded pipeline construction work in the United States. Together, on average, they employ close to 17,000 pipeline construction workers across North America.
Mr. L.A. (Buster) Gray, Project Director of MPS stated: "Pipeline construction work utilizes a large number of highly skilled workers which in turn requires high paying jobs. A project of the magnitude of Keystone XL can generate the annual income for a worker and his family. This pipeline project would bring badly needed jobs to our industry and the region.
"We had a discussion with TransCanada to determine the number of workers it would take to construct Keystone XL. As a group of companies that has been building large-scale infrastructure projects for years, we fully support the figure of 13,000 workers who would be needed to build this pipeline."
Mr. Patrick D. Michels, President of Michels Corporation, commented: "Knowing how significant the Keystone XL pipeline is to U.S. national security, energy independence, economic growth and job creation, we are very eager to get started with construction. There is no question that the permitting delays have impacted our ability to purchase supplies from U.S. companies and hire U.S. workers who need jobs. Getting the permitting go ahead will trigger the spending and hiring that will hopefully provide a spark to jumpstart the economy."
Mr. Robert A. Riess, Sr., President and CEO of Sheehan Pipe Line Construction Company added: "This project is vital to our company and the pipeline construction industry as a whole. We will put over 1,500 skilled American workers to work on our portion alone. The presence of construction spreads in the communities along the Keystone XL route will result in the creation of numerous local jobs that will not exist without the construction of the pipeline. The presence of the pipeline construction workers in these communities will also stimulate local small businesses. Finally, the jobs created by the operation of the pipeline and in the refineries on the Gulf coast will continue long after the construction phase of the project is complete. This project is critical to the future success of our economy and country."
TransCanada has stated since 2010 that Keystone XL will create 13,000 construction jobs to build the pipeline, and American manufacturers making several billion dollars in materials required to construct the line creates a further 7,000 jobs.
Mr. Mike Langston, President of Price Gregory (a Quanta Services, Inc. operating unit) International commented on TransCanada's planned Keystone XL Pipeline Project. "Clearly, this project is a win-win for all those involved. The communities where this pipeline infrastructure will be built will realize both short term and long term benefits. Short term, our company will be procuring a broad range of goods and services from service providers in the communities where the line will be built. We will also be involved in community affairs, always willing to lend a helping hand where needed.
"Most importantly, there would be several thousand highly paid workers to build it, bringing badly needed jobs to the region. This critical pipeline infrastructure makes our country stronger by securing a source of crude oil from a friendly, neighboring country."
Mr. Craig V. Meier, President of Sunland Construction, Inc. commented, "We strongly support this project for three important reasons: it offers significant economic benefits, strengthens energy security and will protect the environment while safely delivering energy Americans need.
"This project will positively impact our employees and subcontractors, and just as important, the local economies along the route of the pipeline. Not only will our company be spending money with various rental/service businesses, our employees will be spending time and money at local grocers, restaurants, hotels, trailer parks, convenience stores, banks and other local businesses."
TransCanada released details earlier this month of the exact numbers of workers needed during construction. This data is based on the company's 60 years of experience building pipelines. MPS, through its member companies Michels, Price Gregory and Sheehan, along with Sunland, assisted TransCanada in developing the data below that represents a typical workforce needed for a pipeline project of this size.
Construction of the U.S. portion of the 1,600 mile pipeline (1,300 miles in U.S.) is broken down into 17 spreads or segments:
•500 workers are needed per spread - that's 8,500 jobs
•Keystone XL also needs 30 pump stations worth tens of millions of dollars. Each station requires 100 workers - that's 3,000 jobs. Add to that another 600 jobs that would be needed for the six construction camps and tank construction at Cushing, Oklahoma
•A project of such magnitude needs construction, management and inspection oversight - that would create 1,000 jobs, bringing the overall Keystone XL total to 13,000 jobs
"TransCanada appreciates the partnerships we have developed with these U.S. companies who would build this project that is vital in helping achieve U.S. energy security," said Russ Girling, TransCanada's president and chief executive officer. "We believe in this project just like all the contractors, suppliers and workers do. It is unfortunate these jobs Keystone XL would create can't be realized now, allowing these hard working individuals to work and provide for their families immediately."
Keystone XL has the capacity to deliver 830,000 barrels of oil per day to U.S. refineries in Cushing, Oklahoma and the U.S. Gulf Coast. Two hundred and fifty thousand barrels of capacity has been made available for the delivery of U.S. domestic oil from the Williston Basin in Montana and North Dakota and oil from Cushing. Long-term, binding contracts for thousands of barrels per day from the Williston Basin and Cushing have already been signed. This supports the desire in the United States to ultimately achieve domestic energy security.
With more than 60 years experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada's network of wholly owned natural gas pipelines extends more than 57,000 kilometres (35,500 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with approximately 380 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 10,800 megawatts of power generation in Canada and the United States. TransCanada is developing one of North America's largest oil delivery systems. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: http://www.transcanada.com or check us out on Twitter @TransCanada.
Top American companies highlight importance of Keystone XL to U.S. job creation