By Rob Gillies

The Canadian company behind the Keystone XL oil pipeline said Wednesday it has suspended work on the pipeline in anticipation of incoming U.S. President Joe Biden revoking its permit.

Biden’s Day One plans included moving to revoke a presidential permit for the pipeline.

The 1,700-mile (2,735-kilometer) pipeline would carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast, passing through Montana, South Dakota, Nebraska, Kansas, and Oklahoma.

“As a result of the expected revocation of the Presidential Permit, advancement of the project will be suspended,” the Calgary, Alberta-based company said in a statement.

First proposed in 2008, the pipeline has become emblematic of the tensions between economic development and curbing the fossil fuel emissions that are causing climate change. The Obama administration rejected it, but President Donald Trump revived it and has been a strong supporter. Construction already started.

Kirsten Hillman, Canada’s ambassador to the United States, said Canada needs to move on now that Biden has made a decision.

“Of course we’re disappointed. We worked hard over the past number of months trying to make the case for Keystone XL," Hillman told the Canadian Broadcasting Corporation.

“He had made a commitment during his campaign and he lived up to that commitment. I think we have to accept that and move forward.”

Prime Minister Justin Trudeau raised Keystone XL as a top priority when he spoke with Biden in a phone call in November. The project is meant to expand critical oil exports for Canada, which has the third-largest oil reserves in the world.

Jason Kenney, premier of the oil-rich province of Alberta, said late Tuesday he urged Trudeau to tell Biden that “rescinding the Keystone XL border crossing permit would damage the Canada-US bilateral relationship.”

Trudeau and Biden are politically aligned and there are expectations for a return to normal relations after four years of Trump, but the pipeline is an early irritant as Biden has long said he would cancel it.

Trudeau has tried to balance the oil industry’s desire for more pipelines with environmentalists’ concerns. He canceled one major pipeline to the Pacific coast from oil-rich Alberta, but approved another and instituted a national carbon tax.

Share:
More In Politics
JetBlue Bids on Spirit, Jeopardizing Frontier Deal
JetBlue made an unsolicited offer to buy low-cost carrier Spirit Airlines, potentially jeopardizing the original offer from Frontier Airlines. Several analysts sounding the alarm on JetBlue's proposed $3.6 billion merger, saying the deal doesn't quite make sense. Jim Corridore, Senior Insights Manager at Similarweb joined Cheddar's Opening Bell to discuss.
Biden Admin Latest Federal Student Loan Extension Adds to Borrower Uncertainty
The Biden administration is once again extending the pause on federal student loans payments — this time, through the end of August. In a statement, President Biden cited a recent analysis from the Fed that if the payments were to resume, millions of student loan borrowers would face significant "economic hardship, delinquencies, and defaults that could threaten America's financial stability." Sarah Foster, an analyst at Bankrate, breaks down the impact of the extension on borrowers, the economy, and the future of student loan forgiveness. "I think this is just an instance of the federal student loan forbearance program kind of creating additional uncertainty for borrowers, especially in the sense that these past four extensions from the Biden administration have kind of come at the 11th hour here," she said.
President Biden Orders Oil Reserve Release
President Biden is trying to help Americans at the pump by tapping into U.S. oil reserves in an unprecedented way. He also announced several steps to punish oil companies. Lisa Whalen, automotive and mobility analyst at Morning Consult, joins Cheddar News to discuss.
U.S. Stocks Close Higher, Tech Stocks Lead Advance
U.S. markets closed higher to end Monday's session, with tech stocks leading the advance. Gene Goldman, Chief Investment Officer at Cetera Financial Group, joins Cheddar News' Closing Bell to discuss the potential future of the major U.S. indexes, and how factors like policy moves from the federal reserve and the ongoing Ukraine-Russia war could impact volatility.
Need2Know: COVID Booster Updates, Ukraine, Third Sacramento Suspect Arrested
Catching you up on what you need to know on April 6, 2022, with updates on the FDA’s meeting to discuss a second COVID booster shot, more on the war in Ukraine, tornadoes on the Gulf coast, a third suspect arrested in connection to the mass shooting in California, Darwin’s lost notebooks mysteriously returned, and more.
Load More