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Michael Reeves President Ports-to-Plains Alliance. Transportation Vital to Economic Development.
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Michael Reeves President Ports-to-Plains Alliance
Transportation Vital toEconomic Development • Getting these clean energy industries to locate here requires us to maintain a national commitment to new research and development. But is also requires us to build world-class transportation and communications networks, so that any company can move goods and sell products around the world as quickly and efficiently as possible. • President Obama, weekly radio address, March 24, 2012
Ports to Plains Benefits • Economic development to rural areas of North America • Infrastructure to improve commerce, particularly agriculture and energy industries • Improved highway safety • Education and research exchanges
Ports-to-Plains Eastern Alberta Corridor • Upgrade routes for moving equipment to oil sands • Expanded hours at Port of Wild Horse • Very similar communities to rest of PTP region – rural, energy, agriculture • Medicine Hat hosting Ports-to-Plains Annual Meeting Oct 2 - 4
Oil Sands Impact on Texas Economy Est. to add $766 million - $1.5 billion to Texas Economy between 2010 and 2035 Preserve or create 7,080 – 13,400 jobs annually, with wages between $303 million and $576 million The range of these estimates depends on the ability of growing oil sands production in Alberta to find pipeline access to market. Over 170 Texas companies have been identified that supply equipment, parts and services being used in the development of Alberta’s oil sands – more than in any other state.
Texas – Alberta Relations Alberta exported $3.7 billion to Texas in 2011 Texas is largest non-energy export market Key Sectors: oil & gas, agriculture, mining and high technology Texas capital and expertise key in development of Alberta oil and gas industry Almost 10% of Calgary’s population is either American descent or hold US passports “Texas’ strong ties to Mexico, its leading export market, coupled with the growing importance of Mexico as an Alberta trade partner, could provide opportunities for joint ventures or other forms of business collaboration.”
Tijuana Mexicali Ciudad Juárez Nogales Hermosillo Chihuahua Piedras Negras Nuevo Laredo Matamoros Saltillo Monterrey Culiacán Torreón La Paz Durango Cd.Victoria Mazatlán Zacatecas Cancún SLP Tampico Ags Progreso Tuxpan Mérida Tepic Querétaro Guadalajara Campeche Jalapa Toluca D.F. Colima Veracruz Chetumal Morelia D.F. Villa Hermosa Manzanillo Puebla Cuernavaca Lázaro Cárdenas Chilpancingo Oaxaca Tuxtla Gutiérrez Acapulco Salina Cruz Ciudad Hidalgo Dallas To Ports to Plains Houston San Antonio Del Rio Allende Monclova San Pedro Texas Tech University 13
PTP is directly impacted by KXL Ports to Plains Corridor Keystone XL
President Recognizes Need for Canadian Oil “Imported oil will remain an important part of our energy portfolio for quite some time. “Obviously we’ve got to look at neighbors like Canada and Mexico who are steady and stable” and “we can share American know-how and technology with them” President Obama, March 30,2011
Ports to Plains is logical route for trade between Alberta, Texas and Mexico PTP serves oil exploration
Transportation key to development Megaloads of heavy equipment are essential to development of oil sands projects
Protesters using transportation to block oil sands development
Transportation Costs Factor into Manufacturing Decisions • Large size of materials mean greater shipping cost • 1.5 mw blade - $7 per mile shipping cost • 2 mw blade - $15 per mile shipping cost • Advantage to locate manufacturing facilities near wind farm sites
Infrastructure Demands • 8-10 permitted and escorted loads per tower • 5 regular loads per tower • 13 to 15 total truck loads per wind tower • 4000 MW farm with 2667 towers would require up to 40,005 trucks and 53,340 pilot cars
Who Buys US Farm Products? All figures are in U.S. DollarsSource: U.S. Dept of Commerce, Census Bureau, August 2009
Who Buys US Farm Products All figures are in U.S. DollarsSource: U.S. Dept of Commerce, Census Bureau, August 2009
Ports-to-Plains Alliance Michael Reeves 5401 N. MLK #395 Lubbock, TX 79403 (806) 775-2338 www.portstoplains.com michael.reeves@portstoplains.com