Energy experts weigh in after Canadian premier says she wants to discuss Keystone Pipeline 2.0 with Trump
The Premier of Alberta, Canada, Danielle Smith, has expressed interest in discussing the possibility of reopening the Keystone XL oil pipeline with President Donald Trump. This pipeline, originally designed to transport oil from Alberta to the U.S., has been the subject of much political debate over the years. Construction on the project began in 2010 but was halted by former President Barack Obama. Trump revived the project during his first term, only for it to be blocked once again by President Joe Biden in 2021.
Smith is hopeful that with Trump’s support, the pipeline could be resumed during his second term. She is eager to explore potential cross-border pipelines and new routes that could benefit both countries. Smith has indicated that she is open to discussing the possibility of a “Keystone 2.0” or other similar projects with the Trump administration.
The American Energy Institute (AEI) CEO, Jason Isaac, believes that restarting the Keystone XL pipeline would align with Trump’s agenda of lowering energy costs and enhancing North American energy infrastructure. The pipeline’s capacity to transport heavy sour crude oil could support the production of affordable fertilizers, thereby reducing food production costs. Additionally, the increased oil supply would stabilize fuel prices, ultimately lowering transportation and energy costs for American families.
While Trump may face litigation if he proceeds with the construction of the pipeline, experts suggest that Congress could play a role in limiting legal action. By providing the necessary permits for the completion of the Keystone XL project and enacting legislation to restrict litigation, the process could be expedited and investor confidence maintained.
A report published by the Biden administration’s Department of Energy in December 2022 highlighted the economic benefits of the Keystone XL project, estimating that it could create thousands of jobs and have a positive economic impact of billions of dollars. The potential reopening of the pipeline could not only strengthen energy security but also stimulate economic growth and lower energy and food costs for American consumers.
In conclusion, the discussions between Smith and Trump regarding the Keystone XL pipeline hold promise for enhancing energy security and affordability in both Canada and the U.S. By working together to overcome regulatory hurdles and potential legal challenges, the two leaders could pave the way for a mutually beneficial energy infrastructure project.
