Former President Donald Trump expressed his desire for the construction of the Keystone XL Pipeline, promising streamlined regulatory approvals for the controversial crude oil project, which faced significant opposition from environmentalists and was ultimately halted by the Biden administration.
Key Highlights:
Project Overview:
The $9 billion Keystone XL Pipeline was proposed in 2008 to transport 830,000 barrels per day of oil from Canada’s Western tar sands to U.S. refiners.
The project was officially halted in 2021 when then-President Biden revoked a crucial permit needed for its U.S. segment, which was previously approved by Trump in 2017.
Trump’s Commitment:
In a recent social media post, Trump called on the company involved in building the pipeline to “come back to America,” assuring that his administration would facilitate “easy approvals” and an “almost immediate start” to the project.
He emphasized the contrast between his administration and Biden’s, stating, “The Trump Administration is very different… We want the Keystone XL Pipeline built.”
Company Response:
The company originally behind the project, TC Energy, indicated on Tuesday that it had moved on from the Keystone XL initiative. TC Energy had spun off its oil pipeline business into a new entity named South Bow Energy.
South Bow spokeswoman Katie Stavinoha confirmed in an email, “We’ve moved on from the Keystone XL project,” adding that the company is focusing on developing options to meet the growing demand for Canadian oil.
Financial Implications:
TC Energy has been seeking over $15 billion in compensation from the U.S. government due to the cancellation of the Keystone XL project.
Opposition to the Pipeline:
The Keystone XL project faced persistent opposition from various groups, including U.S. landowners, Native American tribes, and environmentalists, who argued that it was unnecessary and detrimental to the transition to cleaner fuels.
Legal challenges continued to hinder construction efforts even after initial approvals.