The document analyzes the proposed Keystone XL oil pipeline from Alberta, Canada to Nebraska. It would transport 830,000 barrels per day of crude oil. The pipeline is proposed to address oil demand and make the US less dependent on foreign oil imports. However, its environmental impacts were questioned as it would produce 1.44 million tons of carbon emissions annually and could potentially pollute water sources like the Ogallala Aquifer if leaks occurred. While creating short-term jobs and economic growth, it may disrupt other industries like farming and tourism and face opposition from landowners and indigenous groups along its path. The analysis finds the project is not environmentally sustainable long-term.

1. A Systems Analysis of Keystone
XL Pipeline
GROUP 15/ CEE 3000A
ARMAN YOSAL
GABRIEL MARTINEZ
JOSIA TANNOS
TOMMY KURNIAWAN
NOVEMBER 13, 2014

2. Content
Background and Purpose
Functional Characteristics
Quantified Impacts:
Economic
Environmental
Social
Politics
Sustainability Analysis
Sustainability Recommendations
Limitations of Analysis
2

3. Background and Purpose (1)
N
Figure 1: Proposed Route [1]
The Keystone Pipeline is owned by
TransCanada.
Keystone XL is the fourth phase of the
Keystone Pipeline.
Runs from Alberta, Canada to Steele
City, Nebraska.
3

4. Background and Purpose (2)
Figure 2: Map with sources and
estimated loads [2]
First proposed in 2008, but was
rejected.
Reapplied for Presidential Permit in
2012 with new route.
Will transport synthetic crude oil,
diluted bitumen, and light crude oil.
Meant to tackle consumer (refineries)
demand for oil, especially heavy oil.
4

5. Functional Characteristics (1)
Length: 1,897 km (1,179 mi)
Diameter: 914 mm
Capacity: 830,000 bpd
Components:
Carbon steel.
Fusion-bonded epoxy.
Cathodic protection.
Pumps and pump stations.
5
Figure 3: Assembly of the Gulf
Coast Project. [3]

6. Functional Characteristics (2)
Carbon Steel
Harder and stronger than stainless steel.
Withstand impact from 65-ton excavator with 3.5-inch teeth.
Figure 4: Carbon steel
pipeline. [4]
6

7. Functional Characteristics (3)
Fusion-bonded epoxy coating
Protects steel pipe from corrosion.
Steel cleaned
and heated.
FBE powder
sprayed and
melt on surface.
Figure 5: FBE process. [5]
7

8. Functional Characteristics (4)
Cathodic Protection
Prevents corrosion.
Impressed current cathodic
protection.
Corrosion is passed on from the
pipeline’s metal to the similar
metal by making the pipeline’s
metal a cathode in the
electrochemical cell.
Figure 6: Cathodic protection for pipeline.
[6] 8

9. Functional Characteristics (5)
Pumps and Pump Stations
41 pumps stations separated by
about 80 kilometers from each
other.
Powered by 6,500 horsepower
electric motor.
32,000 horsepower of pumping
power.
Facilitates the movement of oil
within the pipeline.
Figure 7: Pump Station. [7]
9

10. Quantified Impacts: Economic (1)
Positive
➢ Raises the cost of oil for all Canadian crude (increased production).
➢ Providing United States a more stable supply of oil and therefore
cheaper source of fuel.
➢ Makes the U.S less reliant on foreign imports, especially from
unstable nations.
10

11. Quantified Impacts: Economic (2)
Positive
➢ Stimulates local small businesses.
Boosts GDP of both the United
States and Canada.
➢ Creates approximately 42,100
direct and indirect jobs for local
communities (lodging, food
services, transportation,
warehousing, etc.).
Figure 8: Jobs Distribution. [8]
11

12. Quantified Impacts: Economic (3)
Negative
➢ Mainly creates temporary jobs to the communities.
➢ Decreases investment in renewable energy.
• Renewable energy creates more job.
• 16.7 vs. 5.3 jobs.
12

13. Quantified Impacts: Environmental (1)
Positive
➢ No carbon emission from rails or other conventional transportation
methods.
○ 440 – 480,000 tons CO2/year.
13

14. Quantified Impacts: Environmental (2)
Negative
➢ Huge amount of carbon emitted to the atmosphere after completion.
○ Construction: 0.24 million tons CO2/year.
○ Operation: 1.44 million tons CO2/year.
○ Total: 147 – 186 million tons CO2/year.
○ Climate change.
14

15. Quantified Impacts: Environmental (3)
Figure 9: Carbon dioxide
saved vs. Carbon dioxide
produced. 15

16. Quantified Impacts: Environmental (4)
Negative
➢ Water pollution.
○ Ogallala Aquifer.
➢ Forest destruction and soil contamination.
○ Boreal forests of Alberta – the world’s largest intact ecosystem.
○ Damaged soil.
16

17. Quantified Impacts: Social (1)
Positive
➢ Ensures the US a steady supply of oil.
○ Keeps gas prices low.
17

18. Quantified Impacts: Social (2)
Negative
➢ Disrupts activities in other sectors.
○ Farmers/ Ranchers (571,000 workers -> $76 billion).
○ Tourism (780,000 workers ->$67 billion).
➢ Disrupts private landowners and aboriginal tribes.
○ 93% land used is private land.
○ Controversy of Eminent Domain.
○ Rosebud Sioux Tribe (South Dakota).
○ First Nations (Canada).
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19. Quantified Impacts: Politics (1)
19
Positive
➢ Strengthens political relations between the Canadian and American
government.

20. Quantified Impacts: Politics (2)
20
Negative
➢ Increases resentment within the growing environmentally aware
public sphere.
➢ Could lead to more conflict within the current divided government
(e.g. shutdown, lame ducks, etc.).
➢ Gives oil companies a platform to promote the use of oil.

21. System is NOT
sustainable.
Sustainability Analysis (1)
21

22. Sustainability Analysis (2)
Positive Negative
Economic • Energy security. Less
dependence on
overseas oil and
assured steady supply.
• Creates jobs.
• Stable flow of oil.
• Boosts GDP and
stimulates local
businesses.
• Most jobs are
temporary.
22

23. Sustainability Analysis (3)
Positive Negative
Political • Strengthens political ties
between Canada and the
US.
• Exacerbates an already
negative public
environment.
• Increased
intergovernmental
conflicts.
Social • Keeping gas price low. • Disrupts local
landowners, farmers,
ranchers, indigenous
tribes, and tourists.
23

24. Sustainability Analysis (4)
Positive Negative
Environmental • Fewer carbon emissions
with respect to
transportation methods.
• During construction and
operations, there is a lot
of carbon pollution.
• Disruption of local Alberta
ecosystem.
• Ogallala aquifer has the
potential to be polluted.
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25. Focus on improving the extraction method of tar sands to trap more of
the resulting chemicals.
Make it a point to reinforce pipes, especially around the Ogallala
aquifer.
Compensate Landowners fairly or even generously.
Be environmentally friendly.
Sustainability Recommendations
25

26. The Keystone XL hasn’t begun construction.
All sources provide data based on projections instead of actual
performance.
Limitations of analysis
26

27. References
http://keystone-xl.com/about/the-keystone-xl-oil-pipeline-project/
http://pubs.acs.org/doi/pdf/10.1021/es303238z
http://www.businessweek.com/articles/2013-10-24/keystone-pipelines-gulf-coast-leg-will
-soon-be-delivering-oil
http://fuelfix.com/blog/2014/01/22/transcanada-begins-oil-deliveries-through-keystone-xl
-southern-leg/
http://www.cepa.com/wp-content/uploads/2012/11/e-fusion-bonded-epoxy.gif
http://www.water.ca.gov/groundwater/well_info_and_other/california_well_standards/fig
ures/74-90fig5.jpg
http://keystone-xl.com/wp-content/uploads/2013/11/Keystone-XL-Pump-Stations-Fact-S
heet-Oct-2013-FINAL.pdf
http://energytomorrow.org/blog/2014/february/~/media/EnergyTomorrow/blog/14-Febru
ary/Reduced%20KXL%20jobs%20by%20industry%20and%20earnings%2012014.j
pg
27