Construction of the long-debated Keystone XL pipeline linking the U.S. and Canada was officially halted Wednesday (Jan. 20) after President Joe Biden revoked the permit to expand the pipeline.
Andy Black, chief executive of the pipeline association, said Biden’s new order is “killing 10,000 jobs, taking $2.2 billion in wages out of workers’ pockets, and it’s not (a policy) that Americans need or want right now.”
The association said building the Keystone XL pipeline would create 10,000 high-paying U.S. jobs during construction. Those U.S. jobs would pay more than $2.2 billion, according to a project labor agreement with four U.S. unions.
Keystone XL President Richard Prior told the Associated Press that he expects more than 1,000 jobs to be cut in just the next few weeks and that “we will begin a safe and orderly shutdown of construction.”
The pipeline was first proposed in 2008, but stalled during the Obama administration. The project was relaunched by President Trump, with the support of Canadian Prime Minister Justin Trudeau.
Trudeau said Wednesday he spoke with Biden by phone last November and called the pipeline a key priority to expand oil exports from Canada, which has the world’s third-highest oil reserves, to the United States. Trudeau said, “We are disappointed, but recognize the president’s (Biden) decision to keep his campaign promise on Keystone XL.”
“Workers in Alberta, Saskatchewan and across Canada will always have our support. Canada is the single largest supplier of energy to the United States, contributing to America’s energy security and economic competitiveness and supporting thousands of jobs on both sides of the border.”
Trudeau did not say whether the Canadian government would try to engage with the U.S. to restart construction of the project.
Canada’s Alberta Premier Jason Kenney said the U.S. is not “treating a friend (or) ally” by unilaterally canceling Keystone XL construction.
In a statement, Kenney said, “This is an insult to America’s most important ally and trading partner on the first day of a new administration. The leader of our closest ally retroactively vetoed approval of a pipeline that actually exists and is co-owned by the Canadian government, directly attacking by far the largest part of the U.S.-Canada trade relationship, our energy industry and exports.”
But Biden’s move was praised by environmental groups.
Anthony Swift, director of the Canadian program at the Natural Resources Defense Council (NRDC), said this month, “President Biden’s decision to reject the Keystone XL pipeline on day one turns the page on the next 12 years of our nation’s energy struggle, and it sets the stage for a more prosperous future powered by clean energy that lays the foundation for a more prosperous future powered by clean energy.”
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