Canadian Oil Tycoon Backs Pipeline Revival Amid Global Crude Price Surge

Canadian oil tycoon Adam Waterous has publicly expressed support for a proposal to revive parts of the former Keystone XL pipeline, which was canceled by Joe Biden in 2021. Waterous, CEO of Strathcona Resources, stated that he would prefer a new West Coast pipeline to increase access to Asian markets.

The South Bow project aims to increase Canada's crude exports to the US by more than 12% and has launched a competitive bidding process for 450,000 barrels per day of contracted pipeline capacity. Waterous' support is seen as an early indication of commercial backing from Canadian oil sands producers at a time when global crude prices are soaring.

Waterous pointed out that the South Bow proposal could be built faster and more cheaply than a new West Coast pipeline, while also carrying potential political benefits for Canada. He suggested using the project as leverage in trade negotiations with the US to protect Canadian industries such as steel, auto, and aluminum.