Former Energy Secretary Rick Perry unpacks President-elect Donald Trump’s energy policy on Craman Countdown.
President-elect Donald Trump reportedly condemned President Biden’s decision to end the pipeline at the beginning of his term and said he plans to take steps to restart the Keystone XL pipeline after taking office. The process of reviving the project could reportedly be difficult.
The Keystone XL pipeline was scheduled to run from Alberta, Canada, into the United States, through Montana and South Dakota, and into Nebraska. From there, an existing pipeline network would transport oil produced in Canada, Montana and North Dakota to refineries in the Gulf Coast and Illinois.
It was first proposed in 2008, but quickly faced opposition due to environmental and climate concerns. Then-President Barack Obama vetoed the plan in 2015, but President Trump reversed that decision when he took office in 2017 and allowed it to proceed. However, Biden rescinded the permit for the pipeline after taking office in 2021.
“It’s kind of sad that this company really got screwed over by the government because they invested billions of dollars in these pipelines and the Keystone Pipeline became a metaphor for the environmental movement against oil. ” said Phil Flynn, FOX Business Network contributor and Price Futures Group. a senior account executive said in an interview.
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The Keystone XL pipeline project was canceled in 2021 by President Biden, but President-elect Trump may seek to revive it. (Jason Franson/Bloomberg/Getty Images)
Trump regularly criticized Biden’s decisions during the 2024 campaign, saying in a wide-ranging interview with supporter-turned-adviser Elon Musk that “for the first week, I didn’t condone it.” Because it’s jobs and it moves oil. It’s underground, so there’s no burning trucks, no burning trains, and it’s a much more environmentally friendly method.”
Given its potential to create jobs and promote energy security, President Trump may take executive action once he returns to the Oval Office aimed at paving the way for restarting the project.
The Department of Energy’s December 2022 report summarizes the results of various studies on the impact of the proposed project, finding that the project would create between 16,149 and 59,000 jobs and have an economic impact of between $3.4 billion and $9.6 billion. I believe that it was created. A federal preliminary report issued in 2014 found that 3,900 direct jobs and 21,050 jobs would be created during the expected two-year construction process.
After a meeting with the National Economic Council in the Oval Office of the White House on March 24, 2017, then-President Donald Trump announced final approval of the XL pipeline. President Biden reversed this order in 2021. (Mandel Gann/AFP via Getty Images/Getty Images)
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However, TC Energy, the original owner of the Keystone XL pipeline project, has removed a portion of the pipeline that was being constructed in anticipation of the project continuing after President Trump’s approval in 2017.
“A lot of the infrastructure that was in place, some of it is still in place, some of it is not,” Flynn said. “Some of the steel has been sold and it will take a lot of effort to start this particular pipeline, because even though we had pre-approval, parts of the pipeline would have to be rebuilt. , construction may have to be halted, which could be some kind of difficulty as it would again have to go through the local approval process. ”
Pipes from the Keystone XL pipeline are stacked in a yard near Owen, Alberta, Canada, on Tuesday, January 26, 2021. (Photographer: Jason Franson/Bloomberg via Getty Images/Getty Images)
TC Energy recently spun off its oil pipeline business into a new company, Southbow, but has not said whether it will try to restart the Keystone XL project.
“Southbow supports efforts to transport more Canadian crude oil to meet U.S. demand,” the company told FOX Business in a statement. “Southbow’s long-term strategy is to grow the business safely and efficiently.”
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Former Keystone Pipeline worker Bugsy Allen reacted to the project and President-elect Donald Trump’s plan to revive U.S. energy production on “Fox & Friends Weekend.”
Regardless of whether Keystone XL is eventually restarted, Flynn said, given the dynamics of the oil market, more pipelines could be built across the Canada-U.S. border in the coming years. He said it was highly sexual.
“Canada wants to build more pipelines from Canada to the United States, the Gulf Coast and other areas,” Flynn said. “Regardless of whether this particular pipeline comes back or not, we’re definitely going to see more pipelines coming out of Canada.”
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Mr. Flynn said Keystone XL, or a similar pipeline from Canada, would help the global market for diesel fuel, which can be refined more efficiently using Canadian oil sands, a heavier crude blend than U.S. shale oil. He pointed out that this would help alleviate the shortage.
“If you look around the world, diesel supplies are relatively tight, and the world needs more diesel,” Flynn said, adding that pipelines like Keystone XL will make Canadian oil “more efficient.” “This will allow them to enter the United States in a safe and secure manner.” ” This will help alleviate global supply shortages.
FOX Business’ Madeline Coggins contributed to this report.
