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The Trump team’s plan to resuscitate a dead oil project [XL]
Politico (Yeah, I know) ^ | November 20, 2024 | Ben Lefebvre

Posted on 11/21/2024 6:04:21 AM PST by Red Badger

The company behind the project cancelled it and the steel that was in ground has been removed, but it’s on the president-elect’s energy to-do list.

Donald Trump is looking to revive the Keystone XL oil pipeline on his first day back in the White House, according to three people familiar with the president-elect’s plan, even though no companies are trying to build it anymore.

Trump believes declaring the 1,200-mile Canada-to-Nebraska crude project back on the table would drive the pro-oil message he delivered in his campaign, said people involved in the transition team discussions about the idea. Trump also wants to show he can defy President Joe Biden, who reversed Trump’s initial 2017 approval of the project, which was strongly opposed by the climate movement.

“It’s on the list of things they want to do first day,” said one of the people familiar with Trump’s plan, who was granted anonymity because they were not authorized to talk to the media.

But Trump’s renewed interest in the pipeline faces a sharply different reality now than existed than when he first entered office.

The pipeline’s permit to cross the U.S.-Canadian border was first rejected in 2015 by President Barack Obama. Trump in 2017 reversed that decision and approved the border crossing — only to have that decision revoked by Biden in January 2021. After that, TC Energy, the pipeline’s developer, said it would no longer pursue its construction.

Calgary-based TC Energy no longer owns the pipeline system that the Keystone XL was intended to complement. And the portions of the pipeline that TC Energy had put in the ground in both Canada and the United States in anticipation of the cross-border permit approval have been dug up. Replacing that pipe would require any company that wants to rebuild it to again obtain local permits for the project.

And since Keystone XL’s demise, U.S. oil output has surged to record levels, making the economic case for the Canadian crude shipments to the Gulf Coast less attractive. Canada’s shipments of oil have reached record levels this year — but those barrels are moving through a recently built link to the West Coast, providing a new outlet for that Alberta crude.

During his latest presidential campaign, Trump railed against Biden’s decision to revoke the Keystone XL permit.

“Why does Biden go in and kill the Keystone [XL] pipeline and approve the single biggest deal that Russia’s ever made, Nord Stream 2, the biggest pipeline anywhere in the world going to Germany and all over Europe?” Trump said during his debate with Vice President Kamala Harris, referring to the gas line that was hit by sabotage in 2022. “Because they’re weak and they’re ineffective.”

A Trump transition spokesperson did not respond to email and text message inquiries.

How to get the pipeline built given the original project has ceased to exist was a topic the transition team was discussing, a second person familiar with effort said.

But the pro-oil message it would send was something Trump was interested in delivering, the person said, even if an actual pipeline didn’t materialize right away.

“Everyone in the country knows what the KXL pipeline is,” said this person, who was granted anonymity to discuss private conversations. “It’s energy. It’s infrastructure. It’s construction.”

Any company building the pipeline would have to once again acquire land for the pipeline route, at least in Nebraska, said Jane Kleeb, chair of the Nebraska Democratic Party and head of Bold Alliance, a progressive group that fought against Keystone XL the first time around. That could once again raise bad feelings even among conservative landowners fearful about a private company’s use of eminent domain rights to gain access to land, Kleeb added.

“They can try, but they’ll be starting from scratch,” Kleeb said in an interview. “When the federal permit got revoked, we just didn’t celebrate — we went all the way through the court system to make sure the easements were returned to landowners” in Nebraska.

TC Energy — which tried unsuccesfully to recoup $15 billion in arbitration for the project — spun off its oil pipeline business in October into a new company, South Bow Energy, also based in Calgary. A South Bow spokesperson did not answer specific questions on whether Trump or his associates had approached the company about reviving the project.

“South Bow supports efforts to transport more Canadian crude oil to meet U.S. demand,” Southbow spokesperson Katie Stavinoha said in an email. “South Bow’s long-term strategy is to safely and efficiently grow our business.”

Andy Lipow, head of oil market consulting firm Lipow Oil Associates said the current oil market conditions don’t support undertaking what would be a multibillion-dollar pipeline.

The Trans Mountain pipeline, which completed a major expansion in May, already transports 890,000 million barrels a day of Canadian crude and other fuel to the British Columbia coast for export, reducing the need for a pipeline going south into the United States, Lipow said.

The oil producing cartel OPEC also has five million barrels a day of spare capacity it could bring online, and overall global oil demand growth is expected to be slow for the foreseeable future, something that would weigh against building the pipeline, Lipow added.

“A lot of the impetus for Keystone XL that we had seen in years past is not there today,” Lipow said.


TOPICS: Business/Economy; Government; Politics/Elections; US: South Dakota
KEYWORDS: benlefebvre; biden; boldalliance; canada; china; keystonexl; nebraska; obama; pipelines; railroads; russia; warrenbuffet
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1 posted on 11/21/2024 6:04:21 AM PST by Red Badger
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To: Red Badger

weld baby weld


2 posted on 11/21/2024 6:08:45 AM PST by thinden (Buckle up …..)
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To: Red Badger
The Trans Mountain pipeline, which completed a major expansion in May, already transports 890,000 million barrels a day of Canadian crude and other fuel to the British Columbia coast for export, reducing the need for a pipeline going south into the United States, Lipow said.

In other words that oil is now going to China in all liklihood. Funny how things workout eh Brandon?

3 posted on 11/21/2024 6:10:52 AM PST by xp38
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To: Red Badger

I would hope Trump just allows oil companies in the US to drill for oil. We can pump what we have and then let the oil pipeline and oil company infrustructure take care of itself.


4 posted on 11/21/2024 6:16:09 AM PST by Jolla
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To: Red Badger

Cutoff China from Biden’s oil.


5 posted on 11/21/2024 6:25:07 AM PST by bray (It's not racist to be racist against races the DNC hates.)
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To: Red Badger

Decades ago, when the Alaska Pipeline was shut down, people said it would never be finished.
I said that when there is an oil shortage it would be finished.
Then came the Arab Oil Embargo of the 1970s. The Alaska pipeline was finished real quick!

I also felt the same about the Keystone shutdown for political reasons.
I did notice that when Keystone was shut down by Biden that the KCS-Canadian Pacific train that runs near my house suddenly was pulling hundreds of new oil cars heading for Texas. I figure one of Biden’s KCS cronies was making a killing in hauling oil.


6 posted on 11/21/2024 6:28:58 AM PST by Ruy Dias de Bivar
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To: Red Badger

Incarcerate Kleeb. Set bail at $10 million. She’s a flight risk


7 posted on 11/21/2024 6:30:38 AM PST by bert ( (KE. NP. +12) Where is ZORRO when California so desperately needs him?)
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To: Ruy Dias de Bivar
I figure one of Biden’s KCS cronies was making a killing in hauling oil.

Warren Buffett.....................

8 posted on 11/21/2024 6:31:08 AM PST by Red Badger (Homeless veterans camp in the streets while illegals are put up in 5 Star hotels....................)
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To: bray

Democrats can claim a record amount of oil exports. Our enemies are Iran and Russia. Put their energy out of business and lower prices. US oil companies are not into producing unless the price is high.

Natural gas-cleaner and plentiful. Enviro nuts don’t believe in it because they don’t believe in any energy. I don’t think they even want the sexy stuff-solar/wind. It’s capitalism they hate.


9 posted on 11/21/2024 6:31:30 AM PST by DIRTYSECRET
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To: Red Badger

IIRC, Canada took it off the marry-go-round in the end and closed the door forever.


10 posted on 11/21/2024 6:32:59 AM PST by Sacajaweau
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To: Red Badger

They gave up. You can’t have your pipeline open and close every four years. Now it goes to there west coast and gets exported to China. Good job idiots.


11 posted on 11/21/2024 6:38:55 AM PST by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI..)
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To: Red Badger

I’m sure the Trump transition team has contacted the involved parties regarding a Keystone re-start. Unfortunately alternative services have popped up so the ROI may not be there ...


12 posted on 11/21/2024 6:42:39 AM PST by ByteMercenary (Cho Bi Dung and KamalHo are not my leaders.)
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To: Red Badger

13 posted on 11/21/2024 6:42:59 AM PST by philman_36 (Pride breakfasted with plenty, dined with poverty and supped with infamy. Benjamin Franklin)
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To: Red Badger

All the drilling and digging won’t do us a damn bit of good if we keep exporting record amounts of it...


14 posted on 11/21/2024 6:46:49 AM PST by mewzilla (Swing away, Mr. President, swing away!)
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To: Ruy Dias de Bivar

“ I figure one of Biden’s KCS cronies was making a killing in hauling oil.”

That would be Warren Buffett.


15 posted on 11/21/2024 6:50:18 AM PST by jdsteel (PA voters elected a stroke victim and a dead guy. Not a joke.)
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To: Red Badger

The Russians were subsidizing some of the Keystone protests, such as the one where they littered up the area.

I don’t doubt that the Chinese were, too, either directly or through Biden and other Dems, since they want to process Canadian crude themselves.


16 posted on 11/21/2024 6:53:58 AM PST by piasa (Attitude adjustments offered here free of charge)
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To: Jolla

In Trump’s first term the US became energy self-reliant. And according to reports we now produce more than ever before. Yet, I also read we buy and import oil. Someone please explain.


17 posted on 11/21/2024 6:55:23 AM PST by elpadre
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To: Red Badger

Who needs enemies over seas? We have the Deep State Democrat traitors right here at home!


18 posted on 11/21/2024 6:59:59 AM PST by Dogbert41 (“Blessed are the peacemakers, for they will be called children of God” -Matthew 5:9)
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To: xp38

Yes. Elections have consequence. Biden killed it. The Canadians didn’t just sit there sucking their thumbs. They found another buyer. It will go west.


19 posted on 11/21/2024 7:34:56 AM PST by SomeCallMeTim
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To: Red Badger

20 posted on 11/21/2024 12:15:09 PM PST by Albion Wilde (“Did you ever meet a woke person that’s happy? There’s no such thing.” —Donald J. Trump)
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