Doyle Calls for Truth in Advertising on Keystone Pipeline Jobs

Feb 15, 2012 Issues: Economic Crisis, Energy and the Environment, Foreign Affairs
Washington, DC – U.S. Representative Mike Doyle (PA-14) offered an amendment requiring TransCanada, the company proposing to build the Keystone XL pipeline, to document its claims that 75 percent of the steel used in the pipeline will be made in the United States.
 
“TransCanada has repeatedly assured Congress that 75 percent of the steel used in the Keystone XL pipeline will be made in North America,” Congressman Doyle observed.  “And yet, this company has been unwilling or unable to provide us with documentation to back up that statement.”  
 
“This amendment simply requires TransCanada to formally certify what it has repeatedly told Congress in order to get the permit for its pipeline,” Congressman Doyle added.  “That doesn’t seem unreasonable.”
 
The proposed 1,600 mile Keystone XL pipeline would transport over a million barrels of oil a day from Alberta, Canada, to refineries in Texas on the Gulf of Mexico. 
 
TransCanada has repeatedly touted the domestic manufacturing opportunities presented by the Keystone XL pipeline project.  For example, on December 2, 2011, Alex Pourbaix of TransCanada Corporation testified before the Energy and Commerce Committee that “[w]e are using the latest technologies and the strongest steel pipe from American mills to build the pipeline.”  And on February 2, 2012, TransCanada informed Committee staff that “[a]pproximately 74% of the pipe required for the Project in the United States was sourced from North American based mills -- Evraz Regina Canada and Welspun Little Rock, U.S.”  
 
And yet, Welspun Little Rock makes steel pipe from imported foreign steel at its facility in Little Rock.  The plant also currently houses ready-made steel pipe imported from India for use in the Keystone XL pipeline.
 
TransCanada has said that the pipeline will create 7,000 U.S. manufacturing jobs.  Welspun Little Rock employs roughly 300 workers.  
 
“Everyone in Congress wants a pipeline like this to create good American jobs,” Congressman Doyle said.  “TransCanada has promised us that construction of this pipeline will create 7,000 U.S. manufacturing jobs.  If it’s true, that’s great.  But I for one want to make sure that we aren’t getting played for suckers.  After looking into this issue in some detail, I have concluded that TransCanada has already purchased most, if not all, of the steel for the Keystone XL pipeline from foreign mills.  So I think it’s fair to ask where the other 6,700 U.S. manufacturing jobs are coming from.”
 
“This amendment is about truth in advertising,” Congressman Doyle observed.  “It is simply asking that before a permit is issued, the applicant must certify their claim and provide documentation that 75% of the steel to be used in the pipeline is sourced from North America.  No one in the House should have a problem with making sure the American people haven’t been lied to.  That’s all this amendment would do.”
 
Congressman Doyle offered his amendment to H.R. 3408, legislation authorizing drilling in the Arctic National Wildlife Refuge and off the east and west coasts of the United States.
 
The amendment was defeated on a vote of 193 to 234.
 
 
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