Keystone XL: What Trump’s focus on an oil pipeline says about Canada-U.S. trade
Trump said the pipeline could return in a Canada trade deal, but analysts say shifting oil markets and new projects make a revival unlikely.
- On Tuesday, President Donald Trump claimed the Keystone XL pipeline "may be awoken from the grave" as part of a trade deal with Canada, announcing a three-day postponement of $20 billion in tariffs to finalize negotiations.
- Initially proposed 20 years ago, the pipeline was cancelled in 2021 after President Joe Biden revoked its permit, though Trump has frequently expressed a desire to revive the project during his second term.
- Analysts remain skeptical of full revival, with Rory Johnston, founder of Commodity Context, saying it would be "completely out of the blue and make little immediate sense" given existing infrastructure alternatives and South Bow Corp.'s 550,000-barrel-a-day Prairie Connector project.
- Canadian officials offered no details on the pipeline's status in negotiations, though the integrated trade framework supplies one-fifth of the oil used daily by the United States, underscoring the relationship's strategic importance.
- South Bow expects a final investment decision on the Prairie Connector by mid-2027, while experts suggest President Trump's proposal reinforces U.S. energy security amid geopolitical tensions like conflicts in the Strait of Hormuz.
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5 Articles
Trump eyes Keystone XL revival
{beacon} Energy & Environment Energy & Environment The Big Story Trump says he wants to revive controversial pipeline President Trump indicated late Tuesday that a trade deal with Canada could involve a revival of the Keystone XL. © Dominika Zarzycka, NurPhoto via Getty Images “I have paused the 50% Tariffs against Canada, that were…
Keystone XL could be at the heart of a possible agreement between Canada and the United States
Trump boasts Keystone XL as trade talk win. It's not clear it was ever off the table
Almost a year ago, Prime Minister Mark Carney raised the prospect of reviving the project, as part of a larger pitch to link energy co-operation and support for Canada’s steel and aluminum sectors. Experts say the US president might need this win politically with the US midterms around the corner.
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