Energy industry: Canada supports the Keystone XL Pipeline

Energy industry: Canada’s Justin Trudeau supports the Keystone XL Pipeline

Canadian Prime Minister Justin Trudeau and American President Donald Trump are two different leaders in ways that are beyond counting. But the two men do see eye to eye on the Keystone XL Pipeline and the necessity to develop oil from the Alberta Tar Sands. The stance has environmentalists on both sides of the border upset, but Trudeau is simply being practical, according to Axios. The Alberta Tar Sands are too much of a source of wealth for Canada, with 173 billion barrels of oil, to be left alone. The Keystone XL Pipeline will transport that product to refineries on the Texas Gulf Coast to be processed and then fed into tankers to be distributed to world markets.

Keystone was a political controversy throughout Barack Obama’s tenure as president. Because the pipeline crosses an international border, it had to be approved by the United States State Department. The process took a number of years in what many critics believed was an attempt to slow-walk the approval to death. Finally, the State Department declined to approve the pipeline, and Canada made plans to transport the product to Vancouver, where the idea was to ship it to China. Thus, the tar sands would still be exploited, but the customer would be across the Pacific rather than Texas.

With the ascent of Donald Trump as president of the United States, the Keystone XL Pipeline got a new lease on life. Terms are being renegotiated, but it looks like the State Department, now run by Secretary of State Rex Tillerson, former CEO of Exxon-Mobil, will look upon the pipeline with more favor, much to the delight of the energy industry.