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Sport Biden's rejection of pipeline throws 'wrench' in Canada, US ties

05:00  19 january  2021
05:00  19 january  2021 Source:   msn.com

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US President-elect Joe Biden is to cancel the controversial Keystone XL Pipeline on his first day in office, North American media report. The pipeline is projected to carry oil nearly 1,200 miles (1,900km) from the Canadian province of Alberta down to Nebraska, to join an existing pipeline .

President-elect Joe Biden plans to scrap the permit for the controversial Keystone XL oil pipeline between Canada and the US , two Canadian broadcasters said Sunday. On Sunday, the Wall Street Journal reported that TC Energy plans to use only renewable energy to power the pipeline in a bid to

Prime Minister Justin Trudeau is eager to turn the page on four years of strained ties with Canada's neighbor, but US President-elect Joe Biden's plan to block a major oil pipeline complicates the reset, experts say.

a man with a beard looking at the camera: Prime Minister Justin Trudeau, despite championing climate action, has pledged to get the Keystone XL and other long-delayed pipelines built in order to get Canadian oil to new markets and to get a better price for it © Lars Hagberg Prime Minister Justin Trudeau, despite championing climate action, has pledged to get the Keystone XL and other long-delayed pipelines built in order to get Canadian oil to new markets and to get a better price for it

"It's not a great way to start a relationship," pollster and former political strategist Tim Powers told AFP.

"Given that the Canadian government has said it is very committed to the Keystone XL pipeline, to have the American administration signal that it's going to be scrapped is not helpful," he explained.

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Biden , who will be inaugurated on Wednesday, was vice president in the Obama administration when it rejected the project as contrary to its efforts to combat climate change. The words "Rescind Keystone XL pipeline permit" appear on a list of executive actions likely scheduled for the first day of Biden ' s

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Biden is expected after his inauguration on Wednesday to immediately rescind a permit via executive order for the partially completed Keystone XL pipeline between Canada and the US.

The $8 billion pipeline would transport up to 830,000 barrels of oil per day from the Alberta oil sands, which Biden has lambasted as producing a "very, very high pollutant," to refineries in coastal Texas.

Joe Biden wearing a suit and tie: Joe Biden is expected after his inauguration on January 20, 2021 to immediately rescind a permit via executive order for the partially completed Keystone XL pipeline between Canada and the US © JIM WATSON Joe Biden is expected after his inauguration on January 20, 2021 to immediately rescind a permit via executive order for the partially completed Keystone XL pipeline between Canada and the US

The project was approved by Canadian regulators in 2010 but was then blocked by US President Barack Obama in 2015 due to environmental concerns -- a decision that his successor Donald Trump reversed in 2017.

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The US state department recommends rejection of the US - Canada Keystone XL oil pipeline , saying it had insufficient time to review the plans. US President Barack Obama said he was disappointed that the deadline set by Republicans in Congress had caused the state department to reject the project

Pipe is stacked at the southern site of the Keystone XL pipeline in 2012 in Cushing, Oklahoma for the start of construction © TOM PENNINGTON Pipe is stacked at the southern site of the Keystone XL pipeline in 2012 in Cushing, Oklahoma for the start of construction

Ryan Katz-Rosene, a politics professor at the University of Ottawa, agrees that Biden's decision "does throw a wrench in the Canada-US relationship."

But more important, he said, "it makes things a little bit more uncomfortable for Trudeau in a domestic context."

Oil is Canada's top single export.

"For Canadians, we are talking about $100 billion in (annual) exports," Alberta Premier Jason Kenney said on Monday. "So this is a matter that touches on Canada's vital economic interests."


Video: Biden to end Keystone pipeline early: source (Reuters - US Video Online)

He warned that blocking completion of the pipeline will kill jobs on both sides of the border, weaken the Canada-US relationship and undermine US energy security by making it more dependent on OPEC oil imports.

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Trudeau, despite championing climate action, had pledged to get this and other long-delayed pipelines built in order to get Canadian oil -- the third-largest reserve in the world -- to new markets and to get a better price for it.

To that end, Ottawa bought the Trans Mountain pipeline to the Pacific coast in 2018 to prevent the project's collapse. Kenney's government invested more than $1 billion in Keystone.

If Keystone is nixed, there will be "real pain" in Canada's oil-rich Alberta and Saskatchewan provinces -- already reeling from a slump in oil prices (compounded by the pandemic) -- as well as "a broader economic impact on Canada," Powers noted.

- 'Devastate thousands' of Canadians -

Trudeau heads a minority Liberal government and could face snap elections at any time.

Opposition leader Erin O'Toole, who leads the Conservative Party, said Biden's move would "devastate thousands of Canadian families who have already been badly hurt by the economic crisis."

He called on Trudeau "to immediately reach out to the incoming US administration to stop this from happening."

Biden's rejection of pipeline throws 'wrench' in Canada, US ties

  Biden's rejection of pipeline throws 'wrench' in Canada, US ties Biden's rejection of pipeline throws 'wrench' in Canada, US ties"It's not a great way to start a relationship," pollster and former political strategist Tim Powers told AFP.

TC Energy Corp, the company behind the project, said the pipeline would be operational by 2023. On Sunday, it announced plans to use only renewable energy to power the pipeline in a bid to stop Biden from scrapping it.

News about the pipeline's possible demise, meanwhile, was welcomed by New Democrats and the Green Party, whose leader Annamie Paul said the Biden presidency presented an opportunity to advance joint climate actions.

"We have the chance of a lifetime, as we look to the inauguration of President-elect Biden," she said, "because this is a president who has made it very clear that the climate is going to be at the top of his agenda."

"We should be using our diplomacy to work with them," she said.

Resources Minister Seamus O'Regan said the government is continuing "to make the case for (Keystone) to our American colleagues."

"Canadian oil," he said, "is produced under strong environmental and climate policy frameworks, and this project will not only strengthen the vital Canada-US energy relationship, but create thousands of good jobs for workers on both sides of the border."

But if there is political blowback for Trudeau, Powers opined it would likely be short-lived.

In the long term, he said, Trudeau may even score points with voters -- especially millennials -- by developing a broader partnership with Biden on climate change.

"They may try to frame it as something that helped advance the climate change agenda," he concluded.

amc/to

Undoing Trump's policies and other things Biden did his first week as president .
President Joe Biden has signed over 30 executive orders ranging from reversing Trump-era policy to adjusting the nation’s response to the pandemic.The orders ranged in topic from dealing with the ongoing COVID-19 pandemic to beginning the process for what he hopes will be immigration reform. Many take direct aim at the decisions of former President Donald Trump.

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