Biden revokes Keystone XL permit on first day, straining US-Canada energy ties
President Joe Biden canceled the cross-border pipeline's permit within hours of his Jan. 20, 2021, inauguration, and Alberta's premier called it a blow to the U.S.-Canada trade relationship.
On Jan. 20, 2021, within hours of being sworn in as the 46th U.S. president, Joe Biden revoked the presidential permit for TC Energy's Keystone XL pipeline. The move was part of a package of climate-focused executive actions that also put the United States back into the Paris climate agreement.
The order said the pipeline "disserves the U.S. national interest" and concluded that approving it would weaken U.S. leadership on climate. Biden had said for months during his campaign that he would cancel the project.
What the pipeline was
Keystone XL, first announced in 2005, was planned as a 1,897-kilometer (about 1,180-mile) line that would carry 830,000 barrels of oil sands crude a day from Alberta to Nebraska. There it would have tied into the existing Keystone system that serves Gulf Coast refineries.
The project had a long, stop-start history. The Obama administration rejected it in 2015. President Donald Trump revived it after taking office, and construction was underway in both countries by early 2021. CBC reported that about 1,000 workers were on the Canadian leg in southeast Alberta, and that Alberta's government had agreed the year before to put roughly C$1.5 billion of equity into the project, plus loan guarantees.
Reaction on both sides of the border
Calgary-based TC Energy said it was disappointed and that work on the project would be suspended. The company said it would review the decision and consider its options.
Alberta Premier Jason Kenney called the cancellation a "gut punch" and an insult to the closest U.S. ally and trading partner. He urged Prime Minister Justin Trudeau to press the new administration and suggested Ottawa consider trade and economic sanctions if talks were refused.
Trudeau's response was more measured. He said Canada was disappointed but acknowledged that Biden was keeping a campaign promise. Canada's ambassador to the U.S., Kirsten Hillman, said Canada would accept the decision and move forward.
Why it mattered for freight
The decision was an early point of friction between the new administration and Canada, one of the largest U.S. trading partners. For carriers working the northern border, it was a signal that energy and climate policy would shape the U.S.-Canada relationship alongside traditional trade issues such as tariffs and quotas.
It also showed how quickly a permit for a single piece of cross-border infrastructure could change with a new administration, a risk that applies to bridges, rail links and pipelines alike.