Trump moves to restart Keystone XL pipeline in play for energy independence, jobs

President-elect Donald wants to restart the Keystone XL pipeline on day one of his administration – just as President Joe Biden canceled it on the first day of his. Attempts by House Republicans to revive the project in 2022 were blocked by the then-Democratic majority.

It would be part of Trump’s oil strategy of energy independence combined with “drill, baby, drill,” Politico reported Wednesday. It would also potentially restore thousands of jobs in both the US and Canada that were lost overnight when Biden abruptly stopped the work. 

Trump believes that putting the 1,200-mile Canada-to-Nebraska crude pipeline back on the table would help deliver his campaign promises of energy independence, Politico reported, citing sources close to the Trump transition team. Trump would also see it as another way to repudiate the Biden-Harris era policies and to remind Americans that he approved the pipeline in 2017 against the rants of the climate change crowd.

“It’s on the list of things they want to do on the first day,” said an anonymous Politico source familiar with Trump's plans.

Although local permits would have to be obtained again to begin laying more pipeline, South Bow Energy – the oil pipeline business spun off from TC Energy – avoided any direct answers to Politico’s questions about whether Trump’s people have approached them with regards to a revitalized XL but said, “South Bow’s long-term strategy is to safely and efficiently grow our business.” Although Alberta oil is now able to reach the West Coast, the US market remains a natural and obvious destination for the crude.

During his successful presidential campaign, Trump directly addressed the fate of Keystone several times and said it was a classic example of Biden’s misplaced priorities. “Why does Biden go in and kill the Keystone [XL] pipeline and approve the single biggest deal that Russia’s ever made, Nord Stream 2, the biggest pipeline anywhere in the world going to Germany and all over Europe?” Trump said during the presidential debate with Vice President Kamala Harris. “Because they’re weak and they’re ineffective.”

Thousands of US and Canadian workers lost their jobs when the project was shelved by Biden, apparently to appease environmental extremists who believe pipelines exist to be unfinished. Canada’s TC Energy no longer owns the pipeline system that was supposed to complete the project and a $15 billion lawsuit it filed for compensation was rejected by a USMCA tribunal. But Alberta Premier Danielle Smith is anxious to get the pipeline built and see Canadian oil flowing through it to the US.

“I know the Americans have increased production pretty dramatically in the last 10 years, but it might not always be that way,” she said, “They need to know that if they’re looking for additional supply, they shouldn’t be looking to Iran or Venezuela. They should be looking to their friend up north.”