Marcel Salikhov, Director of the Center for Economic Expertise of the National Research University Higher School of Economics commented to Gazeta.Ru on the reasons for cancellation constructing the Keystone XL pipeline by the new US President.
The US stops construction of the Keystone XL pipeline, follows from the decree of the new US president. According to Reuters, citing an expert on energy and environmental policy at the Center for American Progress in Washington, Christie Goldfuss, the energy strategy of the new administration of Joseph Biden will be different from that of Donald Trump.
The strategy will be to abandon long-term and expensive oil and gas projects whenever possible.
"The main problems with constructing oil and gas pipelines are associated with the fact that the benefits from the construction are received by the regions, in which production increases due to additional taxes and new jobs. But the costs, including environmental and reputational ones, are borne by those regions through which pipes have been laid," adds Marcel Salikhov, Director of the Center for Economic Expertise at the Higher School of Economics.
“Throwing the Keystone XL for years illustrates these challenges. There are no alternatives for pipeline transport yet. Options such as delivery by rail are several times more expensive and most likely have no environmental benefits,” Salikhov said.
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