The Trump administration is reportedly exploring the possibility of reviving the Keystone XL pipeline project, which was canceled by the Biden White House four years ago. President Donald Trump is expected to sign executive actions aimed at facilitating the construction of more oil pipelines as part of an effort to boost fossil fuel production.
Discussions have included a proposal to permit construction on the long-defunct Keystone XL pipeline, with considerations to reroute it through North Dakota instead of Montana. Alberta premier Danielle Smith has expressed Canada's interest in doubling energy production and supplying it to the United States through pipelines.
While some energy lobbyists are skeptical about the feasibility of restarting the project, citing TransCanada Energy's previous termination of the project, there are ongoing talks between the two countries. Canadian oil already makes up a significant portion of the crude oil processed by US refiners, with American refineries favoring Canadian tar sands oil due to its heavy nature.
Environmental advocates have raised concerns about the potential risks associated with transporting Canadian oil, citing the higher likelihood of pipeline leaks and the challenges of cleaning it from waterways. The Keystone XL pipeline was initially proposed in 2008 as an extension of the existing Keystone pipeline, which currently transports a substantial amount of crude oil from Alberta to the US.
Canada's oil exports to the US have seen a significant increase following the expansion of pipelines like the Trans Mountain pipeline. In July 2024, Canada exported a record number of barrels of oil into the US, highlighting the importance of Canadian oil in the US energy market.
