Crude oil: What to know about Trump’s revival of Keystone XL Pipeline construction 

Crude oil: What to know about Trump’s revival of Keystone XL Pipeline construction 

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Former President Donald Trump has expressed intentions to revive the Keystone XL pipeline project, which has been a contentious issue in U.S. energy policy for over a decade.

Tribune Online reports that Trump secured his return to the White House after a triumphant victory over the Democratic candidate and current Vice President Kamala Harris, securing over 300 electoral votes while also winning the popular vote.

The Keystone XL pipeline was proposed to transport crude oil from Alberta, Canada, to various refineries in the United States, particularly in Nebraska and along the Gulf Coast.

Initially approved by Trump in 2017 after being rejected by President Obama in 2015, the project faced renewed opposition when President Biden revoked its permit on his first day in office in January 2021.

Following this, TC Energy, the company behind the pipeline, announced it would no longer pursue construction, leading to the removal of sections of the pipeline that had already been laid.

According to The Guardian, Trump has signed executive orders to allow the reconstruction of the Keystone XL pipeline.

This move is seen as a way to reinforce his pro-oil stance and challenge Biden’s environmental policies. Trump aims to send a strong message about energy independence and infrastructure development, despite the current lack of active interest from companies in pursuing the project.

However, the potential restart of the Keystone XL pipeline may face several challenges. Legal and regulatory issues, including revoked permits and possible land acquisition problems in states like Nebraska, could complicate the process.

Also, changes in market conditions, with increased U.S. oil production and alternative Canadian oil routes, have reduced the pipeline’s urgency.

Equally, environmental opposition, including concerns over climate change and Indigenous treaty rights, will likely lead to significant resistance.

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