Keystone XL Pipeline: Balancing Economic Benefits and Environmental Criticisms Under Trump

Man in suit and red tie at podium.

The Keystone XL Pipeline faced both fierce advocates and staunch opposition, revealing a clash between potential economic benefits and environmental risks during Trump’s presidency.

Key Takeaways

  • President Trump signed an order to advance the Keystone XL pipeline on his first day in office, aiming to boost Canadian crude imports.
  • Despite the push for Keystone XL, trade tensions with Canada persisted under Trump’s administration.
  • The pipeline faced legal and political challenges, with its construction ultimately halted by President Biden in 2020.
  • TC Energy Corp., the company behind Keystone, expressed no interest in rekindling the project.
  • Alberta’s Premier Danielle Smith is exploring new avenues for crude export and open to the Keystone XL discussion.

Trump’s Support for Keystone XL Pipeline

In a move to bolster energy production, President Trump signed an order on his first day in office, clearing hurdles for the Keystone XL pipeline. This action was intended to enhance imports of Canadian crude oil and was a part of Trump’s broader “Unleashing American Energy” initiative, which aimed to revitalize the fossil fuel sector and boost economic growth.

Despite his support for the pipeline, Trump also criticized Canada as an economic partner amid ongoing trade disputes. Trump’s team planned to rescind President Biden’s executive order that halted construction of the pipeline in 2020 immediately after Biden’s election.

Political and Economic Repercussions

While Trump aimed to remove barriers for the Keystone XL, he maintained trade tensions by threatening a 25% tariff on Canadian and Mexican goods. This strain highlighted the complex relationship between fostering North American energy cooperation and navigating trade conflicts. Additionally, Trump argued that the U.S. was not in need of foreign oil, given its domestic abundance.

The Keystone XL project faced legal hurdles, with construction being halted permanently by President Biden’s administration. TC Energy Corp., previously TransCanada, showed no interest in reviving the project, redirecting its focus to other ventures.

Future Prospects and Regional Interests

Despite the lack of corporate interest in pursuing the Keystone XL pipeline, regional stakeholders like Alberta Premier Danielle Smith are eager to explore new routes for crude oil exports. Smith has shown openness to conversations about revitalizing the Keystone XL, reflecting an ongoing interest in expanding market access for Canadian crude oil.

The Keystone XL saga underscores the ongoing debate between economic incentives of large-scale infrastructure projects and the environmental responsibilities leaders face. As discussions evolve, balancing these interests continues to challenge policymakers.

Sources

1. Trump Says He Wants Keystone XL Pipeline to Be Built

2. Trump Stirs Confusion with Support, Spurning of Canadian Oil