Explainer-Why is Trump talking about the Keystone XL oil pipeline?
President Donald Trump's recent social media posts about the potential revival of the Keystone XL oil pipeline have drawn attention to the project amid ongoing U.S.-Canada trade negotiations. The Keystone XL pipeline, stretching 1,900 km (1,181 miles) from northern Alberta, Canada to storage hubs in Oklahoma and Gulf Coast refineries, was initially rejected by the Obama administration but later revived under the Trump presidency. However, the project was ultimately abandoned by the Biden administration.
The pipeline was opposed by environmental and Indigenous groups due to concerns over its impact on the environment and Indigenous lands. TC Energy, the company behind the Keystone XL pipeline, suffered significant financial losses after the project was canceled. In an effort to refocus on natural gas, TC Energy spun off its crude pipelines business into a new entity called South Bow.
Recent forecasts of increased Canadian oil production have led South Bow to propose a new pipeline project called Prairie Connector, which would run from Alberta to Wyoming and utilize some of the existing Keystone XL pipe installed on the Canadian side. South Bow has stated that it will decide on the project's future in 2027, pending proof of a durable U.S. presidential permit. The company has not commented on Trump's recent social media posts.
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