Biden killed 10,000 jobs and caused over $ 2 billion in losses on day one
The oil and gas industry lost $ 2.2 billion after the newly elected US president banned the construction of the Keystone XL pipeline between Alberta, Canada and Nebraska.
“Killing 10,000 jobs and taking $2.2 billion in payroll out of workers pockets is not what Americans need or want right now,” said Andy Black, AOPL President and CEO.
The funny thing is that both oil and gas and construction companies were aware of the course of the new US presidential administration at the stage of the election campaign. Nevertheless, the new energy system will continue to squeeze the US out of the oil market, at least eco-advocates will be glad that US oil will be less used in the production area and will be supplied to the rest of the world.
But this is a misconception.
“Biden’s agenda would reduce full time equivalent employment per person by about 3 percent, the capital stock per person by about 15 percent, real GDP per capita by more than 8 percent, and real consumption per household by about 7 percent. Relative to the CBO’s 2030 projections for these variables, this suggests there will be 4.9 million fewer employed individuals, $2.6 trillion less in GDP, and $1.5 trillion less consumption in that year alone. Median household income in 2030 would be $6,500 less,” says the Hoover Institution analysis.
Alaska Governor Mike Dunleavy issued a statement in which he directly calls Biden's strategy erroneous.
“Today’s announcement to shut down development in the Arctic National Wildlife Refuge (ANWR) should come as no surprise. As a candidate, Joe Biden campaigned on stopping oil and gas development on federal lands. Make no mistake about it, President Biden appears to be making good on his promise to turn Alaska into a large national park,” the statement says. “Alaska does responsible oil and gas development in the Arctic better than anyone, and yet our economic future is at risk should this line of attack on our sovereignty and well-being continue.”
Blocking Keystone XL may ironically lead to an increase in greenhouse gas (GHG) emissions. Government analysis shows pipelines emit fewer GHGs when they make their deliveries compared to other modes of transportation. Denying construction of Keystone XL means much of that crude oil will travel by train or truck instead, producing greater GHG emissions, more air pollution and more traffic congestion.
Image: beemergirl99 / Flickr