Policy

Saskatchewan Premier and U.S. Governors Appeal for Keystone XL Approval

The appeal to the US president backed TransCanada's $7-billion line linking Alberta crude to Gulf Coast refineries


Saskatchewan Premier Brad Wall, alongside 10 U.S. governors, sent a direct letter to U.S. President Barack Obama urging him to approve the $7-billion Keystone XL pipeline. The proposed pipeline by TransCanada was designed to transport crude oil from Alberta’s oilsands to refineries on the U.S. Gulf Coast, moving up to 4 million barrels a day. Key arguments for the pipeline are:

  • Energy Security: The letter emphasized that the pipeline would provide crucial energy security for the U.S., leveraging Canada’s vast oil reserves (the third-largest in the world).
  • Economic Benefits: Supporters argued the project would create thousands of construction and manufacturing jobs, while boosting tax revenue for communities along the pipeline's route.
  • Efficiency: The governors argued that pipelines remain the most efficient and reliable method for transporting large volumes of crude oil, noting a commitment to environmental stewardship.
  • Trade: Premier Wall highlighted the broader importance of the U.S.-Canada trade relationship, specifically regarding the export of North American oil, which would also include oil extracted from the U.S. Bakken formation.

Environmental Pushback and Project Delays: Despite the economic arguments, the project faced heavy environmental opposition. Critics, such as the Pembina Institute, argued that the pipeline would spur increased oilsands production, resulting in massive greenhouse gas emissions equivalent to adding 4.6 million cars to the road, which would undermine global climate targets.

President Obama had previously delayed his decision on the project due to environmental concerns over the pipeline's path through Nebraska's ecologically sensitive Sandhills region. In response, TransCanada was working to revise the route to re-enter the environmental review process, while simultaneously beginning construction on a separate, southern leg of the pipeline between Oklahoma and Texas.

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