Donald Trump plans to revive the Keystone XL oil pipeline on his first day back in the White House, according to three sources familiar with the president-elect’s strategy. While no companies are currently pursuing the project, Trump believes reinstating the 1,200-mile Canada-to-Nebraska crude oil pipeline would signal a strong pro-oil stance and challenge President Joe Biden, who reversed Trump’s 2017 approval of the pipeline amid fierce opposition from climate activists.
“It’s on the list for Day One,” said one source involved in transition discussions, who spoke anonymously as they were not authorized to discuss the matter publicly.
However, the landscape for Keystone XL has changed significantly since Trump first approved it. The project’s permit to cross the U.S.-Canada border was initially denied by President Barack Obama in 2015. Trump reversed that decision in 2017, only for Biden to revoke it in 2021. This prompted the pipeline’s developer, TC Energy, to abandon the project entirely.
Since then, TC Energy has divested its oil pipeline operations, and the pipeline segments previously laid have been removed. Any effort to rebuild would require securing new permits and overcoming logistical hurdles, including reacquiring land along the proposed route. Additionally, U.S. oil production has hit record levels, reducing the economic need for Canadian crude to reach the Gulf Coast. Canada’s oil exports have also surged through alternative routes, such as the expanded Trans Mountain pipeline to the West Coast.
During his campaign, Trump criticized Biden’s decision to cancel Keystone XL, tying it to broader energy policy debates. “Why does Biden kill the Keystone XL pipeline while supporting Russia’s Nord Stream 2?” Trump said during a debate. “Because they’re weak and ineffective.”
Despite the logistical and economic challenges, Trump’s team views reviving Keystone XL as a symbolic gesture supporting energy independence and infrastructure development. “It’s energy. It’s infrastructure. It’s construction,” one source said, acknowledging that a functional pipeline might not materialize immediately.
Jane Kleeb, a prominent Keystone XL opponent and chair of the Nebraska Democratic Party, argued that any new attempt to build the pipeline would face significant resistance. “They’d be starting from scratch,” Kleeb said, noting the previous legal battles to return land easements to Nebraska landowners after the project’s cancellation.
The newly formed South Bow Energy, which inherited TC Energy’s oil pipeline business, has expressed support for increasing Canadian crude exports to the U.S. but has not confirmed any discussions with Trump’s team. “South Bow’s long-term strategy is to safely and efficiently grow our business,” spokesperson Katie Stavinoha said.
Industry experts are skeptical of the project’s feasibility. Andy Lipow, president of Lipow Oil Associates, noted that current market conditions, including slower global oil demand growth and alternative crude transport options, diminish the need for Keystone XL. “The impetus for Keystone XL that existed in the past simply isn’t there today,” Lipow said.
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