The politically charged Keystone XL pipeline is again within the highlight, with U.S. President Donald Trump pitching the corporate behind the undertaking to return to the U.S. and “get it constructed – NOW!”
“I do know they had been handled very badly by Sleepy Joe Biden, however the Trump Administration could be very completely different — straightforward approvals, nearly speedy begin!” wrote Trump on his platform Fact Social on Monday night time.
The roughly 1,900-kilometre pipeline was designed to take oil from northern Alberta to the U.S. Midwest.
The Keystone XL undertaking has a long, tumultuous history, courting again to when it was first proposed in 2008. It was blocked underneath the Obama administration, then revived by Trump throughout his first time period within the Oval Workplace, solely to be killed again by president Joe Biden on his first day on the job.
Final month, Trump rescinded a Biden-era government order revoking a allow for the undertaking, Bloomberg News reported, in concept opening the door for the undertaking to be resuscitated.
South Bow, the corporate that TC Power spun off to deal with its pipeline enterprise, has stated it is now not .
“We have moved on from the Keystone XL undertaking,” stated spokesperson Katie Stavinoha in a press release.
U.S. President Donald Trump is speaking about reviving the Keystone XL Pipeline, at the same time as he threatens to impose tariffs on Canadian imports. Richard Masson, an government fellow on the College of Calgary’s college of public coverage, says many U.S. refineries can solely course of the kind of crude oil that Canada gives, so a commerce warfare would additionally hurt American customers.
‘What does he need?’
Trump’s enthusiasm for the undertaking has left some scratching their heads about his final sport plan for Canadian vitality, on condition that he is nonetheless threatening a 10 per cent tariff on Canadian crude oil, set to take impact in early March.
“The massive query is: what does the administration actually need?” stated James Coleman, an vitality regulation professor on the College of Minnesota.
Rafi Tahmazian, a retired vitality supervisor with Canoe Monetary, urged that Trump could be reacting to the just lately floated concept that Canada revisit plans for an Power East pipeline.
“He is fearful that if we construct a pipeline east, we begin to take a look at sending our oil to different locations and diminishing our dependency on the U.S.,” stated Tahmazian. “And that could be a very large downside for his refiners and the merchandise that they produce for the U.S.”
Tahmazian says Keystone XL has change into a little bit of a metaphor. For Trump, he stated, it is not a lot in regards to the particular undertaking as it’s in regards to the total idea of constructing a pipeline to get extra crude oil into the U.S.
“He is simply poking and saying, ‘I need to provide you with guys an opportunity to acknowledge there’s a possibility to market that oil to us as effectively,'” stated Tahmazian. “And he used the Keystone time period because the car to get everyone conscious of it.”
In a press release, Carolyn Svonkin, a spokesperson for Pure Assets Minister Jonathan Wilkinson, stated Canada is open to a “productive dialog” on the topic, however famous {that a} personal sector associate can be wanted to maneuver the undertaking alongside.
“A personal sector proponent would want to step ahead to advance the undertaking, and there may be not at present one expressing they’d achieve this,” stated Svonkin.
Trump did not identify a selected firm in his put up, and urged that if the unique firm behind the undertaking did not pursue it, then maybe “one other pipeline firm” would.
‘Difficult thought’
Even with Trump’s help, the undertaking may face hurdles.
Dennis McConaghy, a former TC Power government who was concerned with the pipeline’s unique plans, famous that through the earlier Trump administration, opponents of the undertaking used the courts to battle it, which could possibly be an issue once more this time round.
“It is a very difficult thought,” he stated.
Caroline Brouillette, government director of Local weather Motion Community Canada, stated she does not consider such a undertaking may or ought to materialize.
“Canada ought to speed up the transformation of our economic system away from these very risky fuels and moderately double down on the clear vitality sector,” she stated.
In a press release, Lisa Baiton, president and CEO of the Canadian Affiliation of Petroleum Producers, did not straight point out the Keystone XL pipeline. However she stated Canada must do two issues: protect its built-in vitality commerce with the U.S. and do a “home coverage reset” that may entice higher funding in “nation-building infrastructure initiatives.”
The goal, she stated within the assertion, is to “diversify our markets for Canadian merchandise and tariff-proof our nation.”
On X, Alberta Premier Danielle Smith struck an enthusiastic tone about Trump’s pitch, saying she agreed the undertaking should not have been scrapped within the first place.
“Let’s additionally scrap these inflationary tariff concepts and give attention to getting shovels within the floor immediately!” she wrote.
Saskatchewan Premier Scott Moe additionally chimed in on X, saying the path to “continental vitality dominance” is rising non-tariff commerce in North America.
“This contains the development of latest pipelines like Keystone XL.”
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