Trump and Carney Discuss Keystone XL Pipeline Revival: What are the Potential Pros and Cons of This Endeavor?

After years of negotiations, protests, and cancellation, the Keystone XL Pipeline was approved for construction by President Trump during his first term in office. The projected pipeline was supposed to transport large amounts of crude oil from the Canadian oil-fields to refineries in the United States. But other Keystone Pipelines have been an environmental nightmare. In fact, since the first Keystone Pipeline started running, there have been 23 leaks. Those have spilled over a million gallons of crude oil along the path of the pipelines. When Trump approved the Keystone XL in 2017, the project faced numerous environmental delays, as activists tried desperately to protect land, water, and animals.

After his inauguration in January of 2021, President Biden revoked the White House’s approval of the Keystone XL. He wanted to prioritize environmental goals and lead an administration that focused on climate issues. But now, President Trump is back in the White House and the Keystone XL pipeline is back on the negotiation table. What does that mean for US energy security, the climate, and the communities in the pipeline’s path?

What is the Keystone XL Pipeline?

TC Energy, a Canadian oil company, has been running Keystone pipelines to bring oil from Canada to the States for over a decade. The pipeline system helps the American oil market have access to more oil, closer to home. The XL pipeline would almost double the amount of crude oil transported through the system. But not everyone is thrilled about a glut of oil passing through the American countryside.

Controversies

Ranchers, Indigenous tribes, and enviornmentalists have been vocal about their concerns. The pipeline system’s history of leaks and spills causes concern. The projected XL route would have crossed numerous Indigenous tribal lands — passing close to drinking water, sacred, and historical sites. The Rosebud Souix Tribe even sued President Trump during his first term to protect their lands and people.

Ranchers and farmers along the proposed path of Keystone XL were also concerned. TC Energy used eminent domain to seize land from tribes and landowners who stood in the way of building. Eminent Domain is a legal (though ethically problematic) process by which the government or designated company can pay ‘just compensation’ and then take private land for a public project. The pipeline, with its consistent leaks and occasional spills, isn’t something either Indigenous tribes or ranchers want anywhere near their property. Environmentalists don’t want it either. Along with the ranchers and tribes being directly affected, environmental groups are well aware that the XL project could be a disaster in the making. Crude oil in the pipeline is primarily tar sands.

Environmental Concerns

Photo by Kayana Szymczak, via Wikimedia Commons, license 2.0

Tar sands are sludgy, crude oil substances that require more processing than typical crude oil. They’re highly acidic and corrosive. The corrosive nature of this material is one of the reasons other keystone pipelines leak so often — the material is constantly eating away at the pipeline itself.

Tar sands are also harder to clean up when they do spill. The prospective route of the XL pipeline crosses a variety of habitats, and a spill could be devastating. Drinking water, wetlands, sand hills, and other ecosystems are at risk. A leak in the wrong place could put endangered species like whooping cranes, black-footed ferrets, and woodland caribou even more at risk. Even if they reach the refinery safely, studies show that tar sands may emit up to 20 percent more carbon than other forms of oil. With an extra available pipeline transporting over 500,000 barrels of crude oil a day, the increased use of tar sands could have staggering effects on the climate.

Researchers call tar sands the world’s dirtiest fossile fuel. It requires more effort to clarify and releases more carbon into the air than other fuels. Furthermore, producing tar sands is also incredibly destructive to Canada’s boreal forests, which grow in the far northern hemisphere.

These primarily coniferous forests are home to unique, cold-hardy animals and plants. They also store a significant amount of the world’s carbon. When the forests are destroyed, even more carbon is released into the atmosphere. Only about 12 percent of Canada’s huge boreal forest is protected. As a result, increasing the market for tar sands puts even more of that forest at risk.

Potential Benefits of the Keystone XL Pipeline

But the pipeline must have some benefits, right? Trump supported Keystone XL during his first term because it could replace some of the oil currently imported from Venezuela. In 2025, the importation of Venezuelan oil dropped significantly. This was partly because of Trump’s tariffs and political tensions between the two nations.

Another pipeline between the US and Canada could offer increased energy security to the United States. Proponants also claim that the pipeline will create over 20,000 construction jobs. It would also boost the economy, and bring the US and Canada closer as allies. Canadian supporters are hoping the pipeline will boost Canada’s economy as well as encourage the Trump administration to reduce the tariffs against Canadian imports.

Related Article: Trump’s Tariff Play – A Bold Bet for American Revival

Reopening the Keystone XL Conversation

Keystone XL pipeline
(Cropped) image by Shannon Patrick, via Flickr Creative Commons, license 2.0

Supporters of the pipeline are excited, while opponents are understandably concerned. When Trump returned to office in January, he vowed to revive the project and promised “easy approvals” if the project restarted. Easy approvals mean less oversight, fewer regulations, and more heartache for the communities opposing the pipeline.

In October, President Trump and Canadian Prime Minister Mark Carney continued the conversation, and both seem eager to restart the Keystone XL project. For both countries, renewing the pipeline project could improve relations and lessen the trade war that has soured the relationship between the US and Canada.

But recent ad campaigns in Canada critiquing Trump’s tariffs have put all shared goals aside. Trump responded by raising tariffs on Canadian goods another ten percent. People close to Carney claim reviving the talks might be an easy way to rebuild rapport with Trump. This is all because oil and gas industries are unlikely to invest in an expensive pipeline with a history of being cancelled.

South Bow, the daughter company of TC Energy, now controls the Keystone system. South Bow hasn’t jumped on the project yet — it’s possible that years of halted building and wasted funds are concerning. Or maybe it’s just easier to expand the pipelines they already have.

Looming Uncertainty

While the renegotiation of the Keystone XL pipeline may be a helpful way to renegotiate the US-Canadian trade agreement, for those fighting the pipeline, it’s an exhausting reminder that they can never really rest easy.

The Indigenous tribes along the projected corridor aren’t waiting to see if this renewed converstation will go anywhere. They’re stepping forward quickly to remind everyone that the pipeline project violates their treaties with the US government, invades culturally significant areas, damages the environment, and threatens the health and well-being of both tribal and non-tribal communities.

Featured image by Lindsey G, via Flickr Creative Commons