Support Letter for H.R. 3: “Keystone XL Pipeline Act”

By SBE Council at 7 January, 2015, 1:44 pm

UPDATE:  On January 9, the House passed H.R. 3 by a vote of 266-153. See final vote count here.

The Honorable Kevin Cramer

1032 Longworth Building

Washington, DC 20515

Dear Representative Cramer:

The Small Business & Entrepreneurship Council (SBE Council) and our nationwide membership of business owners and entrepreneurs strongly support H.R. 3, the “Keystone XL Pipeline Act.”

Delays in approving this important project cannot be justified on any grounds. This is a critical energy supply and security issue, as well as being vital for U.S. economic growth, job creation and small business development.

This project means quality job growth, new business formation, and an increase in oil supplies from reliable sources. The building and operation of Keystone XL would benefit small businesses via affordable energy and economic growth. Small businesses within the energy sector would see growth opportunities as a result of the pipeline’s construction and operation. An underreported fact is that the U.S. energy sector is dominated by small businesses.

Consider the latest U.S. Census Bureau data:

• Among oil and gas extraction businesses, 91.1 percent of employer firms in 2011 had less than 20 workers.
• Among oil and gas pipeline and related structures construction businesses, 65.5 percent of employer firms in 2011 had less than 20 workers.
• And among oil and gas field machinery and equipment manufacturing businesses, 57.6 percent of employer firms in 2011 had less than 20 workers.
• Among support for oil and gas operations businesses, 83.3 percent of employer firms in 2011 had less than 20 workers.
• Among drilling oil and gas wells businesses, 79.8 percent of employer firms in 2011 had less than 20 workers.

The energy business is all about small business. A new study released by SBE Council on November 13, 2014, found that small businesses are driving America’s energy renaissance. For example, from 2005-2012, construction businesses related to oil and gas pipeline and related structures grew by 12.2 percent among firms with less than 20 workers; oil and gas extraction businesses grew by 4.1 percent among firms with less than 20 workers; businesses drilling oil and gas wells grew by 7.9 percent among firms with less than 20 workers; businesses supporting oil and gas operations grew by 29.1 percent among firms with less than 20 workers; and manufacturing businesses related to oil and gas field machinery and equipment grew by 8.5 percent among firms with less than 20 workers. It is important to understand that during this same period, the total number of small and mid-size employer firms declined, but the opposite was true in the energy sector. Construction of Keystone XL would mean increased small business growth, opportunities for entrepreneurs, and a stronger economy for America.

A vote in favor of H.R. 3 is a vote for small business and quality job creation. Thank you for considering America’s small business sector on this critical issue. SBE Council and its members look forward to House passage of H.R. 3.

Sincerely,

Karen Kerrigan, President & CEO