Trump Revives Keystone XL Pipeline Amid Soaring Gas Prices

The Keystone XL pipeline project has been revived by US President Donald Trump, who claims it as a trade talk win. However, experts say it's unclear whether the project was ever off the table.

Keystone XL was first proposed almost 20 years ago and would have brought over 800,000 barrels of oil from Alberta to the US each day. The project faced significant challenges from landowners, Indigenous leaders, and environmental groups before former President Joe Biden revoked a key permit in 2021.

Canadian Prime Minister Mark Carney raised the prospect of reviving Keystone XL with Trump last year as part of a larger pitch to link energy cooperation and support for Canada's steel and aluminum sectors. Since then, gas prices in the US have soared by over $1 per gallon due to the ongoing war in Iran.

According to Jay Khosla, executive director of economic and energy policy at the Public Policy Forum, rising gas prices and the draining of the US strategic petroleum reserve could be an 'Achilles heel' for Trump. Khosla notes that Canadian oil is reliable and crucial to the US economy, accounting for one-fifth of the oil used daily by the US.