The last part of the Keystone XL pipeline project called Phase IV run into headwinds after varying issues were raised about the viability of the project in terms of economic, environmental and ecological impacts of the project. Phase IV was the final one, and the intended route runs through Nebraska and Montana where it would combine with existing oil pipelines. The section comprises of 534 kilometers of pipeline. The channel has attracted controversy last seen with the Trans-Alaska oil pipeline in the 1970s. The key player in the debate includes the project's contractor, TransCanada, the government of the United States, and environmental groups. Environmentalists have become significant parties due to their continued opposition to the project. The courts have been involved since they have had to determine suits against the project by environmental groups.
Key economic considerations of the project are based on the scope of the project and its impact on the United States economy. The total cost of Phase 3 and phase 4 of the project cost is $7 billion which will create a stimulation effect on the economy ("FACT SHEET: Keystone XL Pipeline Act (S.", 2015) . The project is expected to generate thousands of jobs as well as raise tax revenue through property taxes. Opponents of the project argue that project benefits firms outside the United because the steel used is imported and the few permanent jobs created at just 35.
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Environmental considerations contributed most significantly to the controversy of the project. The project is estimated to negatively impact the climate due to increased carbon dioxide emitted from burning of sand crude. Consumption of the extra oil from the project would add more carbon dioxide into the atmosphere. A possible spill of sand oil in the Gulf region would be catastrophic due to the difficulty of cleaning sand spills. The refineries would negatively impact the quality of air for the immediate human settlements (Rapier, 2017) . Likewise, the project is an excellent threat to Ogallala aquifer in case of oils spill due to the pipeline's proximity to the aquifer. The aquifer holds the record as the largest in the world as a source of freshwater.
Approval of such a project that crosses foreign territory requires an express authorization by the president of the United States. Though phase IV is not in Canada, it was evaluated as part of the whole project, which required presidential permit. The state department assessed the project to determine whether the project fulfils the national interest criteria.
The project is expected to smoothen out excess demand and help in the stabilization of fuel prices in the United States (STI Group - Industrial, 2013) . The extra oil would put downward pressure on the fuel prices in the country, resulting to cost savings for fuel users. The US will reduce its oil imports, and the savings will be reinvested else to the benefit of the economy as a whole.
References
FACT SHEET: Keystone XL Pipeline Act (S. (, 2015). Retrieved 9 September 2020, from
https://www.dpc.senate.gov/docs/fs-114-1-3.pdf
Rapier, R. (2017). Getting Up To Speed On The Keystone XL Pipeline. Retrieved 9 September
2020, from https://www.forbes.com/sites/rrapier/2017/03/24/getting-up-to-speed-on-the-keystone-xl-pipeline/#4d2d895c5702
STI Group - Industrial, M. (2013). How the Keystone Pipeline Will Impact the Economy?
Retrieved 9 September 2020, from https://setxind.com/midstream/how-the-keystone-pipeline-will-impact-the-economy/
