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Line 3 replacement delivers more jobs, spending than expected in Minnesota: study
David Thompson

Line 3 replacement delivers more jobs, spending than expected in Minnesota: study

Project now operating and safely delivering Canadian crude oil to U.S. consumers

DULUTH, THIEF RIVER FALLS, MINNESOTA  ~~~~~   August 6, 2022 (LSNews)  Enbridge’s Line 3 Replacement Project had bigger economic benefits than expected for U.S. communities, with thousands more jobs and nearly double the anticipated project spending, according to a new independent study.  

The Mayor of Thief River Falls, Minnesota said the findings run counter to the narrative by opponents, who throughout the project claimed the forecasts of its economic impact were overstated. 

“Not only were the opponents wrong, they were wrong to an amazing scale,” said Mayor Brian Holmer, according to the Duluth News Tribune.  

“At a time when doors for businesses in other communities were shutting, Line 3 changed that in my community.” 

Calgary-based Enbridge commenced replacement of the 1,765-kilometer Line 3 oil pipeline from Alberta to Wisconsin in 2017.  

The project restored the pipeline’s capacity to 760,000 barrels per day. It had been running at approximately 390,000 barrels per day since 2008, when Enbridge voluntarily reduced rates to maintain pipeline integrity. 

The last segments in Minnesota were completed in fall 2021 and the new pipeline went into service on October 1.  

“The project surpassed all economic impact projections and created family-sustaining jobs for many Minnesotans,” said Lisa Bodine, chair of the Area Partnership for Economic Expansion (APEX).

APEX commissioned the study, conducted by the University of Minnesota Duluth’s Labovitz School of Business and Economics.

Researchers assessed the project’s economic impact in 16 affected counties (15 in Minnesota and one in Wisconsin). 

The Line 3 Replacement Project was initially expected to take two years in the region to complete but ended up taking seven in part due to opposition and regulatory delays. And while that increased costs and delayed its in-service date, it provided additional economic benefits for communities in the region. 

In 2017, the project was expected to support a high of 8,670 jobs in the 16 counties. In fact, during the peak year of construction in 2021 it supported 14,423 jobs. This includes direct construction jobs, indirect jobs in associated industries, and induced jobs created by related consumer spending.  

Researchers estimate that for each one direct job created by the Line 3 project, 0.86 jobs were created in supporting sectors.  

On average the project supported 4,157 jobs per year over its seven-year build, compared to the average of 7,200 jobs over two years of construction that was previously expected.  

This generated US$1.7 billion in employee wages and benefits, more than four times the previous expectation of US$358 million.  

According to Enbridge, more than 1,500 Indigenous people worked on replacing Line 3 in the U.S. and Canada. Specifically, in Minnesota, where Native Americans made up 7 per cent of the workforce, over US$300 million went directly to Native-owned contractors, tribal community investments and training and hiring Indigenous workers, the company says.  

The University of Minnesota Duluth researchers also found a “small but still significant” aspect of the Line 3 economic benefits in spending by project workers to cover expenses such as lodging and meals.  

Enbridge representatives estimated that the company paid roughly US$132.1 million in these “per diem” expenses, about US$10 million more than was expected in 2017.  

In all, the company spent about US$2.9 billion of its US$4 billion project cost in the study area in Minnesota and Wisconsin. That’s nearly double the 2017 expectation of US$1.5 billion of the total US$1.9 billion budget.    

The new Line 3 is now operating and safely delivering crude oil from Canadian producers to U.S. consumers.  

Enbridge anticipates that some restoration and monitoring activities will continue through 2023.   

#LSN_Econ  #LSN_MNNews  #LSN_Duluth #LSN_WiscNews

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Thunder Bay and Area Homicides  2022  

Thunder Bay and Area Homicides  2021  

 

No Date Victim Charged  
Homicide #6 Thunder Bay Dec 18 BRIAN JACOB WYER SHANE KRUCHAK TBPS ARREST SUSPECT IN MURDER OF BRIAN WYERTBPS ARREST SUSPECT IN MURDER OF BRIAN WYER

Nov 4

 

SpeCONRAD JOSEPH BANNONnce Court 

  Westfort Ward's 3rd Murder 2021
 
Nov 19

STEVEN BURNS
Part Ave 

  WHAT REALLY HAPPENED IN THE STABBING DEATH OF STEVEN BURNS?
  Jordon Lapointe
147 Frederica St
  4th MURDER SUSPECT ARRESTED IN WESTFORT FIRE BOMBING
June 29   DUSTIN DENNIS MOFFATT WESTFORT KILLER WAS WANTED ON WARRANTS
May 10 Liam Slipperjack.   Update LIMBRICK STREET MURDER OF LIAM SLIPPERJACK
         

 

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Homicides 2022

No Date  Victim Charged  
         
Aug 2   Harriet GRAY Homicide #10  Manslaughter charge laid in death of senior
July 29, 2022 CHARLIE RITCH   Thunder Bay's Murder #9 East End
June 26 AIDEN CUNNINGHAM DANIEL BRAYDEN KEEFE Homicide #8  MURDER SUSPECT ARRESTED
June 24 JOHN RUEBEN. JOSEPH HUBBARD 904 Miles Street 
WANTED “MISSING” MAN ARRESTED FOR MURDER
Jun3 17  ALAN CORY ESQUEGA    SADISTIC RAPIST BEATEN TO DEATH WITH BASEBALL BAT
  June 8 

Not released
Now say this death is not being counted as a homicide

 

  Sudden Death #6 Junot Park
June 5 Tyrese BELMORE   Thunder Bay 5th Homicide Victim identified
May 23 CODY BULMER DANIEL BLAIS 2nd MURDER SUSPECT ARRESTED
May 15  JAMES  CHAPAIS JAIME OSMAR WANTED MURDER SUSPECT ON BAIL CAPTURED BY THUNDER BAY POLICE
May 2 Adrian Anthony Richardson
Hoddar Ave 
  TBay Homicide #2 Toronto Gang War in Current River
         
Jan 26, Antoine BOUCHARD,
325 Bethune Street
  MURDER on BETHUNE STREET 2022
         
         

 

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