North Dakota protesting the construction of an oil pipeline passing near the reservation of Standing Rock Sioux

Upon being sworn in as the 45th president of the United States, Donald Trump announced that the construction of the Dakota Access Pipeline would go on. This project had stalled under President Obama administration as result of environmental concerns. President Trump’s announcement is a huge blow to the supporters of the sovereignty of the Rock Sioux Tribe and environmental activists. While making the announcement, the White House claimed that the project was a significant boost for the economy of the United States. There are several winners to the construction of the project.
The first group of winners from President Trump’s is workers. According to Trump, the construction of Dakota Access Pipeline will create between 8000 and 12,000 jobs. However, some observers believe that this project will not have as much jobs as Trump claims. This is because most of the project has already been completed. The only piece remaining is the piece that is supposed to pass under Lake Oahe. This piece is the one bringing about protests as Lake Oahe is the source of drinking water of the Rock Sioux Tribe. The prospect of an oil pipeline passing under it is likely to contaminate its water. Nevertheless, the continuation will definitely create some new jobs for Americans in North Dakota (Browdin).

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The other group that stands to gain from the Whitehouse’s announcement is the small towns located along the pipeline. During the construction of the pipeline, these towns are likely to see local booms in business. This is because individuals working in the pipeline are going to spend some of the money they earn on accommodation, entertainment and food. For example, the Dakota Access corridor has already experienced a boom in local business, thanks to the construction of the pipeline. However, these towns will have to understand that the boom will only be temporary.

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The other likely benefit of the construction of this access pipeline is increases in the local tax revenue. It is projected that the Dakota Access pipeline will generate approximately $55 million in form of property taxes once it is fully operational. This tax revenue will be split in the four states that the pipeline passes through.
Mr. Trump went on to claim that the United States steel industry is also going to benefit immensely from the construction of the Dakota Access Pipeline. While making the announcement, President Trump directed the companies working on the pipeline to only use steal produced by the United States steel companies. This aspect implies that the construction of the pipeline will put a lot of steelworkers back to employment. In the past 2 years, the U.S. steel industry has experienced immense competition from Chinese steel companies. This competition has led to the U.S. steel industry losing about 16,000 jobs over the past two years. Here, we see that the construction of this pipeline offers a lifeline to the nation’s steel industry.
The other reason why the construction of North Dakota Access pipeline should continue is because it is the most effective and efficient way of transporting oil from the fields of North Dakota to Illinois. Once the oil gets to Illinois, it will be linked with other pipelines. It is approximated that the pipeline will carry 470,000 barrels of oil daily. The addition of this oil to the U.S. energy industry is likely to enable the U.S. to be energy-sufficient. With adequate and cheap energy resources, the U.S. economy will eventually develop, thanks to the low cost of producing goods and services.

Despite the various benefits that come with the construction of this pipeline, there are also some serious concerns. The economic assumptions about this project are based on fallacious assumptions that the pipeline never burst. However, history tells a different story as there have been numerous incidences of oil pipeline leakages (Ivanova, 2017). When these leakages do occur, they are usually disastrous and fatal. Cleaning oil spills is usually an expensive affair. As a matter of fact, cleaning these spills is approximated to cost around $16 per gallon. However, the costs of cleaning oil spills tend to vary. For instance, the cost of cleaning oil spills in water is different from that on land. A good example is the five-year BP’s cleanup exercise that cost the company a staggering $62 billion (Ivanova, 2017). Based on these aspects, it is important for the federal government to take into account the environmental effects this project is likely to have in North Dakota. It is inappropriate to simply focus on the economic side of the project while neglecting the environmental side which is also significant.
Conclusion
According to President Donald Trump, the construction of the North Dakota Access Pipeline is likely to have significant economic benefits to United States. For instance, the project is likely to create between 8,000 and 12,000 new jobs for Americans, most of which will be temporary. Once the pipeline is operational, local authorities in the four states it passes are likely to collect more than $55 million in form of property taxes. At the same time, this project is likely to revive U.S. Steel industries which had declined as a result of stiff competition from Chinese companies. Despite the numerous benefits of this project, there are also various environmental concerns which are also as significant as the economic benefits of the pipeline. For instance, the pipeline is likely to contaminate Lake Oahe, the major source of drinking water for the Rock Sioucx Tribe. The environmental aspects of this project have led to protests about the project in North Dakota since last year’s spring.