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Biden to block Keystone pipeline, reversing Trump’s early move
(Bloomberg) – Joe Biden will cancel the Keystone XL pipeline hours after becoming president on Wednesday, again killing a cross-border project that won a four-year reprieve under his Republican predecessor, Donald Trump. major environmental actions, Biden to revoke TC Energy Corp. pipeline license. via an executive order because it does not “serve the American national interest”, according to the information sheet of its transition team. 2015 decision by President Barack Obama to prevent the pipeline from crossing the border. Trump reversed that in 2017 on his fourth full day in office over objections from environmental groups. TC Energy said it was “disappointed” and would suspend work on the project, leading to the layoff of thousands of workers. The ruling reverses “a comprehensive and unprecedented regulatory process that spanned more than a decade and which has repeatedly concluded that the pipeline will transport much needed energy in an environmentally responsible manner,” the Calgary-based company said. . $ 56, down 1%, on the news. Environmentalists are counting on the latest release – to come more than a dozen years since the pipeline was originally proposed – to hold up. They argue the project would provide an outlet for heavy Canadian oil sands crude mined in Alberta through particularly energy-intensive processes that increase its carbon footprint. “Immediately and once and for all end the dirty and dangerous Keystone XL oil sands pipeline. would be an important first step and a testament to the leadership of the diverse grassroots movement that has long pushed to shut it down and other harmful pipelines, ”said Tiernan Sittenfeld, senior vice president of the League of Conservation Voters environmental group. on the electoral track, but his official approach has always provoked the indignation of the leaders of the oil industry, of certain Canadian interests and of the unions which support the project. “The Biden administration has chosen to listen to the voices of fringe activists rather than union members and the American consumer. day one, ”the United Association of Union Plumbers and Pipe Fitters said in an email statement based on pre-action information. Construction on Keystone XL began last year, with an investment of $ 1.1 billion from the Province of Alberta. Entire segments of the line, including the one that crosses the Canada-U.S. Border, have already been built. TC Energy has worked to make the project more palatable to a Democratic administration, signing labor agreements with four major pipeline unions. last August, agreeing to sell an equity stake in the line to indigenous communities along the route and promising to power it entirely with renewable energy. However, Keystone XL has been a lightning rod for controversy and a litmus test for environmentalism almost since its first proposal in 2005. The 1179 1,897 kilometer segment is designed to transport oil from Alberta through Montana, South Dakota and Nebraska, then connect to an existing grid feeding crude oil to the Gulf Coast. The line is said to carry up to 830,000 barrels of oil per day, and opponents argue that it will spur oil sands development, contributing to climate change. A few years ago, supporters of the controversial crude pipeline argued that a more cheaper heavy crude in Canada would help fuel producers. on the US Gulf of Mexico coast, weaning off supplies from countries like Venezuela or the conflict-prone Middle East, but refiners in Texas and Louisiana have become increasingly flexible, using more abundant light oil from shale fields. In addition, the price advantage of Canadian crude has narrowed and imports from the country have nearly doubled in a decade to reach a steady flow of over 3.5 million barrels per day, without Keystone XL. “This is not a problem for refiners,” said Robert Campbell, head of petroleum product research at Energy Aspects Ltd. “They can switch to home lighting. The harm would be on the oil sands producers. Alberta Premier Jason Kenney on Tuesday urged Canadian Prime Minister Justin Trudeau to take action to save the permit, saying its revocation “would harm the bilateral Canada-US relationship.” Keystone XL was one of only a handful of energy and mining projects that Biden explicitly opposed during the election campaign. Environmentalists encouraged by his move to Keystone are already pressuring him to revoke a critical clearance allowing the continued operation of Energy Transfer LP’s Dakota Access pipeline and take action against Enbridge Inc.’s plan to replace and expand its aging pipeline from Line 3 from Alberta to Superior, Wisconsin. From the Archives – Why the Keystone Project is Controversial: QuickTake “This is exciting news,” said Dallas Goldtooth, an organizer for the Indigenous Environmental Network. “Now what are you going to do with Line 3 and the Dakota Access pipeline? We are happy, but we want to see what comes next. (Updates with TC Energy’s reaction and shares from the fourth paragraph.) For more articles like this please visit us at bloomberg.com Subscribe now to stay ahead with the hottest business news most reliable source. © 2021 Bloomberg LP
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