Page 4 - NorthAmOil Annual Review 2021

NorthAmOil JANUARY NorthAmOil

Keystone XL’s fate sealed

as Biden takes office

New US President Joe Biden took immediate steps to cancel

the Keystone XL pipeline upon taking office in January, despite

operator TC Energy’s last-ditch efforts to save the pipeline

NORTH AMERICA THE future of the planned Keystone XL pipeline However, the project had become such a
appears to have been decided in Janaury. New controversial one, having served as a lightning
WHAT: US President Joe Biden included the cancella- rod for environmental protests for over a dec-
New US President Joe tion of the pipeline’s presidential permit in an ade. Thus it may have been expected that TC
Biden included the executive order signed on January 20, his first Energy’s last-ditch efforts would fail to change
cancellation of Keystone day in office. The sweeping executive order also Biden’s mind.
XL in his first set of contained other measures related to protecting
executive orders. the environment and mitigating climate change, Climate focus
including a moratorium on leasing activities in In the executive order revoking Keystone XL’s
WHY: the Arctic National Wildlife Refuge (ANWR). permit, climate change was cited as one of the
Biden’s early actions The move is not surprising, given that for- main reasons for the decision.
indicate at least some mer US President Barack Obama, under whom “The Keystone XL pipeline disserves the US
shift away from fossil Biden served as vice-president, had previously national interest,” the executive order said. “The
fuels. rejected the pipeline before it was approved by United States and the world face a climate crisis.
outgoing President Donald Trump. In addition, That crisis must be met with action on a scale
WHAT NEXT: Biden is moving swiftly to undo some of the and at a speed commensurate with the need to
Keystone XL was thought Trump administration’s decisions, which “do avoid setting the world on a dangerous, poten-
to be the energy project not serve the US national interest”, according to tially catastrophic, climate trajectory,” it contin-
most at risk, though the the incoming government. ued. “At home, we will combat the crisis with an
oil and gas industry will ambitious plan to build back better, designed to
see other impacts in the Last-ditch effort both reduce harmful emissions and create good
longer term. Keystone XL’s developer, TC Energy, was trying clean-energy jobs. Our domestic efforts must go
to save the project until the end, and unveiled a hand in hand with US diplomatic engagement.
plan earlier in January for the pipeline to achieve Because most greenhouse gas [GHG] emissions
net-zero greenhouse gas (GHG) emissions if it originate beyond our borders, such engagement The project had
was brought into service, which was targeted for is more necessary and urgent than ever. The
2023. United States must be in a position to exercise become such a
The company said net-zero emissions would vigorous climate leadership in order to achieve a controversial one,
be achieved by buying renewable energy from significant increase in global climate action and
electricity providers, and purchasing renewable put the world on a sustainable climate pathway. having served as
energy credits or carbon offsets where direct Leaving the Keystone XL pipeline permit in
access to renewable power is not available. place would not be consistent with my Admin- a lightning rod
TC Energy also pledged that additional istration’s economic and climate imperatives.”
renewable sources would be developed along for environmental
the pipeline’s route by 2030, phasing out any Response opposition for
potential need for renewable credits or carbon TC Energy expressed its disappointment
offsets. with the decision to revoke its border permit over a decade.
Biden has a long-term goal of putting the US for Keystone XL, citing job losses and North
on the path towards net-zero emissions by 2050, American energy security. The company added
and in the immediate term, he will be focused that the cancellation would “negatively impact
on driving an economic recovery following ground-breaking industry commitments to use
the coronavirus (COVID-19) pandemic. TC new renewable energy”.
Energy hoped that Keystone XL’s job creation Canadian Prime Minister Justin Trudeau also
potential, combined with these new environ- released a statement saying his government was
mental goals, would help to sway Biden in his disappointed with the cancellation but rec-
stance on the pipeline. ognised Biden’s decision to fulfil his election

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