Trump's Keystone XL Support May Be Too Little, Too Late
Alberta's $1.3 billion investment in Keystone XL may be a lost cause, according to Richard Masson, former CEO of the Alberta Petroleum Marketing Commission (APMC). The project was abandoned after years of delays and lawsuits, and Masson believes it's unlikely the government will recover its investment.
Despite this, US President Donald Trump is still backing the pipeline, and has signed off on a cross-border permit. Calgary-based South Bow Corp. has proposed a new project that would use some of the existing pipe to transport crude from Hardisty to the Canada-US border, where it would connect with a U.S.-based Bridger Pipeline project.
The new project has secured long-term commitments to move 465,000 barrels per day to U.S. delivery points, and is expected to make a final investment decision next year. However, Matthew Lewis, founder of Denver-based Plainview Energy Analytics, warns that other challenges could await the development, including increasing Canadian production.
Former Alberta Premier Jason Kenney believes reviving the pipeline would be good for Alberta, Canada, and the US, and could lead to increased production and more industry investment in the oilsands. He also suggests that Trump's support for the project is an opportunity to deliver on a promise.