The Economic Impact of the Keystone XL Pipeline

Earlier today, Regional Economic Models, Inc. (REMI) and Energy & Water Economics launched
a joint investigation into the economic impact of the Keystone XL pipeline project. REMI is a
global leader in energy economics and policy analysis. The aim of the investigation is to resolve
the differences found in the studies completed by Cornell’s Global Labor Institute (GLI) and the
Perryman Group, a consultancy firm hired by TransCanda (CN:TRP).

According to Scott Nystrom, associate economist at REMI, “the REMI model forecasts that the
XL expansion of the Keystone pipeline would create about 16,000 jobs over a two-year period.
After [those] two years, about 800 jobs would be sustainable moving forward.”

The president of Energy & Water Economics, Dr. William W. Wade stated, “The pipeline
will increase competition between Canadian and Middle East crude producers for position in
Gulf Coast and Midwest refineries, but will not affect refined product prices.” Wade went on to
say that the benefits of the project would be strongest in the pipeline states themselves. “These
areas could see an increase in gross domestic product by as much as $3.1 billion as well as an
increase in business sales by as much as $6 billion,” said Wade.

TransCanada Corp, based in Calgary, Alberta, gained 1.4 percent to $44.98 at 11:36 a.m. New York time.