One of the important decisions already made by U.S. President Joe Biden after taking office was to suspend the U.S.-Canada pipeline that Trump approved to start construction. Canada is unhappy about this and wants to file a judicial action, but also feels difficult.
One of the orders signed by new President Joe Biden just after he took office was to halt the Keystone XL pipeline that his predecessor, Donald Trump, had agreed to build. The pipeline project, which had already begun construction, was planned to run from Alberta, Canada, through Nebraska to Texas, USA.
The company in charge of the U.S.-Canada Keystone XL pipeline project has announced that it may lay off nearly 1,000 employees in the near future, our RFI correspondent Pascale Guéricolas reported from Montréal on Friday (Jan. 22, 2021). Construction of the pipeline and pumping stations has been halted since Biden announced the suspension of the project. The governor of Alberta, Canada, intends to pursue judicial proceedings in response to Biden’s decision. The North American Trade Agreement between Canada and the United States and Mexico has a mechanism for resolving such disputes.
Another option for Canada
It seems unlikely that the Canadian federal government would agree to this approach. Eighty percent of Canada’s export market is in the United States, and a dispute with its major customers would not be helpful.
Oil companies now need to find new export markets abroad, which is necessary for them to increase their profitability. Today’s hopes are pinned on another pipeline leading from Alberta to British Columbia (Colombie-Britannique) and then to Asia.
Recent Comments