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One of the first things new U.S. President Joe Biden did after his inauguration last Wednesday was revoke the presidential permit that was needed to finish the Keystone XL pipeline expansion. Biden campaigned on the promise to shelve the cross-border project that would transport over 800,000 additional barrels of oil from Alberta’s oil sands to U.S. refineries after Donald Trump approved it in 2019. Alberta Premier Jason Kenney said in a statement that cancelling the project, owned by TC Energy , would “kill jobs in both countries, weaken cross-border ties and undermine U.S. national security” by making the country more dependent than ever on oil imports from OPEC countries. What Does This Mean for Canadian Energy Companies? “With oil prices on the rise, Canada’s crude pipeline egress problem is resurfacing. Oil sands economics have proved to be resilient, and many existing projects can generate free cash flow at oil prices below US$40 a barrel West Texas Intermediate, or WTI. Supply will soon be approaching pre-crisis levels, and Canada’s oil industry will need new pipeline infrastructure to bring new crude to market and prevent heavy oil prices from crashing as they did in December 2018,” points out Morningstar Analyst Joe […]
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