Page 5 - NorthAmOil Annual Review 2021

NorthAmOil JANUARY NorthAmOil

campaign pledge on stopping Keystone XL. advancement and spending on the project.
However, he also welcomed other moves made “After all of its twists and turns, the [Keystone
by Biden in the various executive orders signed XL] saga is a cautionary tale for companies that
on January 20, including the moratorium in have not acquired the social licence to develop
the ANWR and the decisions to rejoin the their projects, merits aside,” commented an
Paris Agreement on climate change and World Enverus analyst, Stephanie Kainz. “While it’s
Health Organization (WHO). (See: US rejoins unclear whether there’s anything [TC Energy]
global Paris Accord in bid to tackle climate crisis, could have done to secure all the needed
page 14) approvals, it is clear institutional investors and
Biden’s move was criticised more sharply by the broader community are demanding ever-
Alberta Premier Jason Kenney, whose govern- higher [environmental, social and governance,
ment agreed to invest CAD1.5bn ($1.2bn) in ESG] standards, including reductions in (real or
Keystone XL last year in a bid to help ensure imputed) emissions. Even [TC Energy’s] elev-
the pipeline was built. In a statement, he said enth-hour bid to make the system carbon-neu-
the Alberta government was “deeply disturbed” tral, while forward thinking, may have come
that this was one of Biden’s first acts as president, across as an afterthought.”
without more input from Canada – though Kainz added that the need for takeaway
Trudeau said Canadian officials had already capacity out of Alberta had also lessened over
made the case for the pipeline to the incom- the course of Keystone XL’s life. Enbridge’s For Biden,
ing administration. Kenney called on Trudeau Line 3 replacement and the Trans Mountain
to enter into immediate talks with the new expansion are able to provide “adequate” export cancelling
US administration on the cancellation of the capacity for more modestly growing volumes Keystone XL
pipeline in the context of a broader agreement out of the Western Canadian Sedimentary Basin
between the two countries on energy supply and (WCSB), she said. is just one of
climate action. For Biden, cancelling Keystone XL is just one
“If the US government refuses to open the of several moves signalling that he will prioritise several moves
door to a constructive and respectful dialogue climate change mitigation, marking a change
about these issues, then it is clear that the gov- from Trump, who supported unrestrained fos- signalling that
ernment of Canada must impose meaningful sil fuel and related infrastructure development. he will prioritise
trade and economic sanctions in response to However, Keystone XL was considered to be
defend our country’s economic interests,” Ken- the main target of swift action by Biden, and climate change
ney was quoted by Canadian media as saying. its demise does not necessarily spell danger for
But given the tone of Trudeau’s statement other projects. mitigation.
on Keystone XL, the prime minister appears More stringent regulatory reviews and stricter
unlikely to engage in any protracted efforts to environmental standards can be expected, and
engage with the Biden administration over the indeed Biden has already suspended new leas-
pipeline. ing on federal land. But these are changes whose
Indeed, while TC Energy said it was review- implications will only be felt once current leases
ing Biden’s decision and considering its options, expire. For most of the oil and gas industry, it is
the company has already said it was suspending business as usual for now.™

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