Revoking of Keystone XL permit a blow to Canada's oil sector

Katie Ramirez
January 22, 2021

Shortly after his inauguration as America's 46th president, Joe Biden signed several executive orders, including revoking the Keystone XL permit.

"I brought up this issue in my very first conversation with president-elect Biden before Christmas", Trudeau had told a news conference, adding, "Over the past number of days and continuing today, we are communicating our arguments in favour of Keystone XL directly to the highest levels of this (US) administration".

"Alberta's government calls for the federal government and Prime Minister Trudeau to immediately enter into talks with the Biden administration on their cancellation of the Keystone XL pipeline in the context of a broader agreement on energy supply and climate action".

As Premier Jason Kenney calls for strict action against the USA government in the wake of the cancellation of the Keystone XL pipeline, some are saying Kenney needs to take responsibility for the situation. A move that delivers a significant blow to Canada's energy sector.

The order said the pipeline was not in the national interest and sent the wrong message to other countries about Biden's commitment to addressing climate change and addressing renewable energy.

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"Surely that is the least that our closest friend and ally owes Canada, which is to respectfully discuss and review the decisions", said Kenney. Lots of oil is also used moving our railroad system, which most experts believe has a larger carbon footprint.

"The Keystone XL pipeline never made sense for either the US or Canada".

In May, during his campaign for the Democratic nomination, Biden said he would cancel the controversial cross-border project if elected. TC Energy says the Keystone XL pipeline would be capable of delivering 830,000 barrels of crude oil per day from Hardisty to Steele City. TC Energy said it expected a peak of 4,000 jobs in the state during construction. TC Energy says in a statement that "advancement of the project will be suspended" and the company likely will take a hit to its first quarter earnings.

"Keystone XL was a huge bright spot for our communities and businesses", said Wanda Diakow, the economic development officer for the rural municipality.

Biden's decision to cancel the permit is seen as the project's death knell, after more than a decade of legal battles and shifting fortunes based on who held office in the White House. "Canada is the single-largest supplier of energy to the United States, contributing to USA energy security and economic competitiveness, and supporting thousands of jobs on both sides of the border", Trudeau said.

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