Pipeline cancellations could have drastic impact on American economy, say investors

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WASHINGTON, DC - On Friday a U.S. District Judge ruled against an injunction which would have stopped construction of the Dakota Access Pipeline.

Immediately following the ruling, three federal agencies including the Army Corps of Engineers released a statement requesting a stop to construction again. The joint statement from the Departments of Justice, Interior and the Army sets a new precedent which could have implications beyond the Dakota Access Pipeline.

The announcement could change the way the United States interacts with Native American Tribes on infrastructure projects beyond pipelines. But some say the announcement to not issue any new permits to Dakota Access isn't fair, as they followed all rules in the permitting process and had a federal judge rule in their favor on the controversial injunction hearing. While one pipeline cancellation won't have a drastic impact on the American economy, if this becomes a trend, things could change.

“If this is our future, where pipelines are going to be stopped left and right, that means the only place for increased oil production to go is on rails. There's going to be more accidents. God forbid more death, loss and more expense. Which means a higher cost at the pump. They've already set a contract date out in the future where they have oil planned to come into this pipeline. Obviously every day that's not met, as a return on investment for the pipeline when they plan on revenues coming in, is now being delayed,” says Eugene Graner, Heartland Investor Services, Inc.

The North Dakota Public Service Commission is holding a public hearing on a new pipeline Tuesday in Watford City.