President Donald Trump’s stance on the Keystone XL pipeline has shifted, causing confusion and stirring debate about U.S. energy policy and trade relations with Canada.
At a Glance
- Trump initially supported the Keystone XL pipeline, signing an order to clear federal obstacles on his first day in office
- Recent statements from Trump criticize Canada as an economic partner, contradicting his earlier support for the pipeline
- Trump’s team plans to rescind President Biden’s Executive Order halting pipeline construction if re-elected
- TC Energy Corp. and its successor, South Bow, show no interest in reviving the Keystone XL project
- Alberta’s Premier remains open to discussions about restarting the project
Trump’s Shifting Stance on Keystone XL
On his first day in office, President Donald Trump signed an Executive Order to clear federal obstacles for the Keystone XL pipeline project, potentially boosting Canadian crude imports. The move was seen as a strong signal of support for fossil fuel development and enhanced energy ties between the United States and Canada. However, recent statements from the president have stirred confusion about his current position on the project.
Trump’s recent criticism of Canada as an economic partner amid ongoing trade disputes has contradicted his earlier support for the pipeline. The President has claimed that the U.S. doesn’t need Canadian oil and gas, citing domestic abundance. This shift in rhetoric has left many wondering about the future of U.S.-Canada energy relations and the potential revival of the Keystone XL project.
Trump’s Energy Policy and Executive Orders
Despite the apparent change in stance, Trump’s team indicated plans to rescind President Biden’s Executive Order halting the pipeline construction immediately after the election. The President’s “Unleashing American Energy” Executive Order revoked 12 Biden administration orders, including the one stopping Keystone construction.
However, Trump’s energy policy has been marked by contradictions. While removing barriers for Keystone, he simultaneously threatened a 25% tariff on Canadian and Mexican goods, maintaining trade tensions.
The Future of Keystone XL
Despite Trump’s renewed interest in the project, the future of Keystone XL remains uncertain. TC Energy Corp., formerly Trans Canada, has shown no interest in reviving the project. The pipeline faced numerous political and legal challenges, with construction halted by President Biden in 2020. TC Energy has since disowned the project, and its pipeline assets were transferred to South Bow in 2024.
South Bow, the current owner of the former TC Energy pipeline assets, has explicitly stated that it has no interest in reviving the Keystone XL project. Instead, the company is focusing on existing infrastructure.
The Keystone XL Pipeline has long been at the center of energy policy debates, environmental concerns, and political maneuvering. The controversial project, which aimed to transport crude oil from Canada to U.S. refineries, was canceled by President Joe… pic.twitter.com/gog9aKFlVK
— wahoopredict (@Wahoopredict) January 29, 2025
Canadian Perspective and Potential for Revival
While the project’s original proponents have moved on, there is still some interest from Canadian officials. Alberta Premier Danielle Smith has expressed openness to exploring new pathways for crude export and is willing to engage in discussions about restarting the project. Her stance points to the ongoing importance of oil exports to Alberta’s economy and the need to find efficient ways to transport Canadian crude to international markets.
