Trump aims to revive the Keystone XL pipeline

Donald Trump is reportedly planning to revive the Keystone XL oil pipeline on his first day back in the White House, according to three individuals familiar with the president-elect’s strategy, despite the fact that no companies are currently pursuing its construction.

Trump sees reinstating the 1,200-mile pipeline, designed to carry crude oil from Canada to Nebraska, as a way to reinforce the pro-oil message that was central to his campaign. The move would also serve as a direct rebuke to President Joe Biden, who reversed Trump’s initial approval of the project, aligning instead with the climate movement’s opposition.

“It’s on the list of things they want to do first day,” said one source involved in the transition discussions, who spoke on the condition of anonymity due to lack of authorization to discuss the matter publicly.

However, Trump faces a vastly different landscape for Keystone XL than during his first term.

Initially rejected in 2015 by President Barack Obama, the pipeline’s permit to cross the U.S.-Canada border was granted by Trump in 2017. But Biden revoked that approval in January 2021. Following Biden's decision, TC Energy, the company behind Keystone XL, announced it would no longer pursue the project.

The Calgary-based firm has since divested itself of the pipeline system that Keystone XL was intended to expand. Additionally, sections of the pipeline previously installed in Canada and the U.S. in anticipation of its completion have been dismantled. Any effort to rebuild would require a company to reapply for local permits, a lengthy and uncertain process.

Moreover, the economic rationale for Keystone XL has weakened. U.S. oil production has surged to record highs, reducing the need for Canadian crude shipments to the Gulf Coast. Meanwhile, Canada’s oil exports have also hit record levels, thanks to new infrastructure connecting Alberta’s crude to the West Coast.

During his campaign, Trump frequently criticized Biden’s decision to revoke Keystone XL’s 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?” Trump said during a debate with Vice President Kamala Harris, referencing the Russian pipeline damaged by sabotage in 2022. “Because they’re weak and they’re ineffective.”

A spokesperson for Trump’s transition team did not respond to requests for comment via email or text.