A new report released by the National Association of Manufacturers concludes that new crude oil pipeline construction could notably benefit the economy by adding construction and maintenance jobs, in addition to significantly contributing to GDP.
The report takes into account a time period in which crude oil production grew from 5.1 million barrels per day in 2006, to reach 8.7 million barrels per day in 2014.
For 2015, it’s estimated that the total U.S. crude oil production will reach a temporary maximum of 9.3 million b/d before slightly decreasing in 2017.
The impact of pipeline construction on the U.S. Economy is two-fold. The report estimates that there will be roughly $11.57 billion spent in the U.S this year to construct new crude oil transmission pipelines. This will bring with it 164,111 jobs and contribute $15.6 billion to total U.S. GDP. Of these 164,111 jobs, it’s estimated that 13.3% will occur in the manufacturing sector.
“Manufacturers benefit from both pipeline construction and pipeline maintenance, and as our network of these crude oil pipelines grows, so does manufacturing opportunity,” commented Ross Eisenberg, NAM VP of Energy and Resources Policy, via a press release. “For manufacturers, this study illustrates yet another reason why the Administration, Congress and our state and local leaders should be encouraging crude oil pipeline investment.”