According to an economic impact assessment from US consulting firm Analysis Group, the ‘Vancouver Energy project’ will provide a major boost to employment, adding more than 1,000 new full-time jobs and $1.6 billion in labour income during the first 15 years of operation. The conclusion of the economic consultants is clear: the project makes from an economic perspective good sense.
In line with America’s strategy to reduce its reliance on foreign oil, the US government has drafted plans to improve its oil infrastructure in the state of Washington. One of the plans, known as the ‘Vancouver Energy project’ aims at building a crude-by-rail uploading and marine loading facility in Vancouver (USA). By better linking the rail infrastructure with the ship network, advocates expect to improve the efficiency and safety of crude oil transport to West Coast refineries, where it will be converted into transportation fuels for American families and businesses.
Socioeconomic impact study
To understand the impact of the project on the region, a number of socioeconomic impact studies have been commissionedover the past months. The most current and detailed economic analysis has just been released, and was conducted by Analysis Group, an international consulting firm with nine US offices and two international offices (Montreal and Beijing). The research concludes that the proposed Vancouver Energy terminal will deliver significant economic benefit to the region, in the long-run creating an average of more than 1,000 jobs annually.
The creation of jobs will, in combination with income and profits created as a result of the terminal’s impacts, provide the local and regional economy with an economic impulse of $2 billion, which amounts to $1.2 billion in present value. “Our analysis finds that the development of Vancouver Energy would lead to increases in employment, labor income and tax revenues. These reflect the direct employment and local business activity from Vancouver Energy’s construction and operation, as well as the multiplier effects as activity ripples through the region’s economy,” says Bruce Strombom, Managing Principal at Analysis Group.
The report has in the meantime been presented to the Energy Facility Site Evaluation Council (EFSEC) – the body in charge of reviewing and permitting large, energy-related projects in Washington. Once EFSEC completes its thorough review process, which also includes key findings from other studies, it will make a recommendation to the Governor of Washington (Jay Inslee), who will subsequently make the final decision.