Joe Biden’s Plan to Shut Down Keystone XL Pipeline Sparks Battle with Canada, Slashes American Jobs
President-elect Joe Biden’s announcement that he will shut down a oil pipeline that has created thousands of jobs and safely increased domestic energy production may be popular with environmental activists, but Canadian Prime Minister Justin Trudeau and the province that is home to the project are vowing to fight back.
Trudeau has supported the $9 billion project despite protests, arguing it will help reduce reliance on foreign oil imports and create jobs. Alberta, which has pitched in $1.1 billion on the pipeline, is also miffed.
The Canada Energy Regulator has details about the pipeline on its website:
The Keystone pipeline system is owned by TransCanada Keystone Pipeline GP Ltd. and was put in service in 2010. The Keystone pipeline transports crude oil from Hardisty, Alberta to refining markets in the U.S. Midwest and U.S. Gulf Coast. The Canadian portion runs from Hardisty east across Saskatchewan and Manitoba, before turning south and crossing the Canada-U.S. border near Haskett, Manitoba into North Dakota.
The pipeline continues south across South Dakota to Steele City, Nebraska, where the pipeline has two branches: one runs east through Kansas and Missouri to delivery points at Wood River and Patoka, Illinois, and the other runs south delivery points located at Cushing, Oklahoma and Houston and Port Arthur, Texas. At Patoka, Keystone delivers crude oil to the Plains terminal which facilitates delivery to local refineries via third party pipelines.
Newsweek reported on the impending battle, citing how Biden’s decision could create tensions between the U.S. and Canada:
Cross border ties may have to overcome an early chill if the new president does indeed stop the Keystone XL project like President Barack Obama did in 2015, citing his administration’s commitment to fighting climate change.
Reuters reported on Monday—citing an unnamed source familiar with Biden’s thinking—that the new president may rescind the Keystone XL permit immediately. This follows an earlier report by CBC that the words “Rescind Keystone XL pipeline permit” appear on a list of executive actions likely scheduled for Biden’s first day in office.
Canadian Ambassador to the U.S. Kirsten Hillman said in a statement to Reuters that Trudeau’s government believes Keystone XL is compatible with both countries’ climate action goals. “There is no better partner for the U.S. on climate action than Canada as we work together for green transition,” Hillman said.
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