Keystone XL Pipeline Case Study

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Course: Decision Making in Complex Environment Course Number: BQOM 2521 The future of the Keystone XL Pipeline Zlatana Dobrilova Nenova Dietrich School of Arts & Sciences Abstract The decision regarding the Keystone XL pipeline has been a topic of major political debate. While some argue that the project will prove very beneficial for the US economy, others are concerned with the environmental impact it will have on the states the pipeline will run through. The BOCR model below analyzes the two options in front of the US President: approve or reject the project. The model concludes that the better alternative in the short and long run is rejecting the TransCanada application for building the Keystone XL pipeline. Page 1…show more content…
Page 10 Sensitivity Analysis:  Benefits: Based on the Benefits Sensitivity graphs above we can see that the priorities of the two alternatives I have chosen change in a similar manner. Moreover, it seems like the cut-off points for Political and Social impacts are approximately the same. Thus, at the beginning the benefits of rejecting TransCanada application are always higher but as we increase all priorities shown above, the benefits of accepting Keystone XL will surpass the ones of rejecting it.  Opportunities: If we examine the Opportunities Sensitivity graphs we can see that they are almost identical to the ones we have under Benefits. The priorities of the two alternatives I have chosen change in a similar manner. Moreover, it seems like the cut-off points for Political and Social impacts are approximately the same. Thus, at the beginning the opportunities of rejecting TransCanada application are always higher but as we increase all priorities shown above, the benefits of accepting Keystone XL will surpass the ones of rejecting it. Page 11
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