According to information received by the Canadian Broadcasting Corporation (CBC) from the United States, the incoming President-elect Biden has a clear plan to cancel the license for Canada’s “bedrock” pipeline expansion project immediately after taking office.
This means that Canada’s oil industry will suffer a major setback.
The Keystone pipeline is the pipeline to the Gulf of Mexico refinery from Hardisty, a major Canadian oil producing province.
The cornerstone expansion project has two purposes, one is to shorten the pipeline path and increase oil transmission capacity, and the other is to include light crude oil from Baker, Montana, United States, halfway into the pipeline.
The project was proposed in June 2008 and rejected by then-President Obama in November 2015.
In March 2017, Trump approved the project again.
If Biden rejects it again after taking office, this ill-fated project will have an impact on Alberta and Canadian oil industry and even the Canadian economy.
It is reported that Alberta has invested 1.5 billion Canadian dollars in this project and provided a credit guarantee of 600 million Canadian dollars.
According to the Government of Canada’s 2019 statistics, Canada’s oil exports are basically exports to the United States, accounting for 10% of Canada’s GDP and providing 550,000 jobs for Canada.