The premier of Alberta, Canada, Danielle Smith, has expressed interest in engaging with the Trump administration to potentially reopen the Keystone XL oil pipeline. The pipeline, initially designed to transport oil from Alberta to the U.S., faced political scrutiny since its construction began in 2010. Former President Barack Obama halted the project, which was later revived by President Donald Trump during his first term but blocked again by President Joe Biden in 2021.
Smith aims to explore opportunities for cross-border pipelines, proposing discussions on new routes or modifications to existing ones. She anticipates initiating these conversations once the U.S. Department of the Interior's new secretary, Gov. Doug Burgum, is confirmed by the Senate. Trump recently revoked Biden's executive order canceling the pipeline's permits, potentially paving the way for its construction to resume.
Experts suggest that restarting the Keystone XL pipeline aligns with Trump's agenda to enhance North American energy infrastructure, reduce reliance on costly imports, and lower energy and food costs. The pipeline's capacity to transport heavy sour crude could support the production of affordable fertilizers, thereby reducing food-production expenses. Additionally, the increased crude oil supply could stabilize fuel prices, consequently lowering transportation and energy costs for American families.
While potential litigation may arise if construction proceeds, experts believe that congressional intervention could help mitigate legal challenges. The Trump administration is expected to issue necessary permits for the project, with efforts to limit litigation to prevent investor apprehension. Congress could play a role in expediting the pipeline's completion and minimizing legal obstacles.
In a report released by the Biden administration's Department of Energy in December 2022, estimates indicated that the Keystone XL project could have generated between 16,149 and 59,000 jobs and had a positive economic impact ranging from $3.4 to 9.6 billion, based on various studies.
