As recently as five years ago, many experts believed that oil and natural gas production in North America was rapidly on the decline. However, advances in technology have completely erased that theory according to Former Conservative Cabinet Member Jim Prentice. Mr. Prentice is strongly urging for the construction of the Keystone XL pipeline, a project which would stretch from Hardisty, Alberta to Steele City, Nebraska creating a critical infrastructure with which to transport crude oil directly from Canada into the American Midwest. This is good news for the Canadian jobs and real estate markets; Canada will need oil transporters, and many of these workers will have to permanently relocate to Saint John.
The Keystone XL Pipeline would be a massive project to be sure. The structure would stretch some 1,179 miles through Canada and the United States creating a 30 inch channel for transporting crude oil directly between the two countries. The cost of the project is estimated at $5.3 billion and would create 9,000 jobs, many of these as skilled labor. In addition to the jobs created for the construction phase of the project, an estimated 7,000 jobs would be added to the economy in support industries such as manufacturing and steel production. Currently, TransCanada is employing 4,000 workers for a similar pipeline project in Oklahoma and Texas. The long-term impact of the project is expected to top $20 billion. Local governments could see as much as $99 million added to their coffers, while state revenues could increase by $486 during the construction phase of the project.
This translates not only into a booming Canadian economy, but also into a booming real estate market in Canada. 7,000 new jobs means 7,000 workers who potentially have to relocate to Canada. These workers will need homes.
Most of the housing boom is expected to be in Saint John, as this is where the jobs will be. This is welcome news; Saint John is an emerging real estate market that needs a slight boost in order to become a hot area for realtors and investors.
While the changing conditions in the oil production market, proposals are currently underway for a pipeline which would transport oil from the west coast to refineries in the east. Such a plan could be under way by as early as 2017, with 850,000 barrels eventually flowing through the structure. As a result, coastal regions such as Saint John can expect to see massive growth in their economies. Maritime jobs are expected to increase. And there is expected to be a massive influx of construction and oil refinery jobs. With the increase in oil production, it is expected that North America will expand export operations in Europe and to other global markets.
Again, all of this is excellent news for the real estate market, especially in Saint John. Economic indicators point to a rapid growth phase in real estate markets in the area. Infrastructures and supporting services will continue to improve as the economy shifts toward total independence from foreign supplies. Local economies will stabilize and experience a period of continued growth. Investment prices for real property is expected to grow as the demand increases.