On March 31, Tesla unveiled its most affordable, all-electric vehicle to date, the Model 3. While the car will not be available until the end of 2017, reservations for the vehicle have already climbed to nearly 400,000, according to Forbes Magazine. Should the 400,000 interested customers purchase their reserved Model 3s, Tesla would rake in an impressive $14 billion while simultaneously proving the financial viability of renewable transportation.
Because Tesla is a publicly-traded, American company, U.S. citizens could reap benefits from the company’s success, such as job creation. American oil companies would make the same argument.
If Tesla is not alone in its ability to produce effective, renewable transportation, fossil fuel’s status as an economic goldmine may change.
In 2010, TransCanada Corporation and Conocophillips commissioned the Keystone Pipeline. Since then, the project underwent additional phases in which proposed numerous extensions to the pre-existing pipeline.
Initially, the Senate defeated the bill that would allow oil to flow through the pipeline in 2014. A bill in favor of the pipeline resurfaced on the Senate floor in 2015, where it passed, thanks to a Republican majority.
President Barack Obama vetoed it despite Republicans’ promise that the bill would reemerge attached to another piece of legislation.
Should Donald Trump, Ted Cruz or Hillary Clinton win the presidential election in 2016, the Keystone Pipeline is likely to become fully operational, as it will not be vetoed by the sitting president.
While the economic benefits of Canadian-based fossil fuel are initially appealing, a closer look from the U.S. State Department revealed that the job growth associated with constructing the pipeline is disappointing.
According to a State Department report, the Keystone Pipeline would create about 42,000 jobs. However, only 35 of these positions would be permanent. If the State Department’s predictions are correct, it seems the average American does not have much to gain from the pipeline except for potentially lower oil prices.
While becoming less dependent on middle-eastern oil is appealing, it seems the economic benefits for the average American are lacking. Environmental impacts aside, in an age of globalization where technology advances at an exponential rate, Americans might want to reevaluate their country’s involvement with the fossil fuel industry.
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