It’s been quite some time since we covered the Keystone XL Pipeline, a proposed extension of the existing Keystone Pipeline System designed to transport crude oil from Alberta, Canada, to Nebraska.
The project’s goal was to expand the pipeline system’s capacity by allowing the transport of up to 830,000 barrels of oil per day over a distance of approximately 1,210 miles. The aim was to provide a more direct route for Canadian oil, and provisions were included for adding American-produced oil from the Bakken formation in Montana and North Dakota.
The last time we reported on this Keystone KL, it included a review of the number of jobs that were not created because Biden terminated this project (initially authorized by President-elect Donald Trump.)
The report, which the Department of Energy (DOE) completed in late December without any public announcement, says the Keystone XL project would have created between 16,149 and 59,000 jobs and would have had a positive economic impact of between $3.4-9.6 billion, citing various studies. A previous report from the federal government published in 2014 determined 3,900 direct jobs and 21,050 total jobs would be created during construction which was expected to take two years.
Now, people familiar with the incoming administration’s plans indicate that Trump will revive the project on Day One.
Trump believes declaring the 1,200-mile Canada-to-Nebraska crude project back on the table would drive the pro-oil message he delivered in his campaign, said people involved in the transition team discussions about the idea. Trump also wants to show he can defy President Joe Biden, who reversed Trump’s initial 2017 approval of the project, which was strongly opposed by the climate movement.“It’s on the list of things they want to do first day,” said one of the people familiar with Trump’s plan, who was granted anonymity because they were not authorized to talk to the media….During his latest presidential campaign, Trump railed against Biden’s decision to revoke the Keystone XL permit.“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 his debate with Vice President Kamala Harris, referring to the gas line that was hit by sabotage in 2022. “Because they’re weak and they’re ineffective.”
Interestingly, the cancellation of Keystone XL by Biden shortly after his inauguration marked a significant diplomatic setback for Canadian Prime Minister Trudeau. He expressed disappointment over the decision.
“The prime minister raised Canada’s disappointment with the United States’ decision on the Keystone XL pipeline,” a statement said. “The prime minister underscored the important economic and energy security benefits of our bilateral energy relationship as well as his support for energy workers.”
Hopefully, Trudeau will better appreciate Trump’s economic diplomacy for the remainder of his time as Prime Minister….for however long that will be.
It’s going to take Team Trump quite some time and effort to rebuild everything that was damaged or destroyed under Biden.
Maybe we will even be able to refill our Strategic Petroleum Reserve.
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