New pipeline discussion emerges years after Keystone XL
Four years after former U.S. President Joe Biden halted the proposed Keystone XL Pipeline, discussion has resurfaced around the possibility of a new Canadian oil pipeline, according to reporting by OilPrice.com.
Keystone XL was designed to transport crude oil from Alberta, one of the world’s most oil-rich regions, into the United States and onward to Gulf Coast refineries. Environmental and human rights opposition ultimately led to its cancellation, along with the loss of thousands of anticipated construction jobs.
Alberta backs new proposal despite opposition
The newly discussed pipeline proposal has the backing of Alberta’s provincial government. At the same time, environmental groups and Indigenous leaders have raised concerns about the potential environmental impact and broader implications of the project.
According to OilPrice.com, the new pipeline would carry oil sands production from Alberta but would not transport oil into the United States, marking a significant departure from the Keystone XL model.
Agreement signed to lay groundwork
Canada’s Prime Minister Mark Carney signed an agreement last month that lays the groundwork for the proposed pipeline. OilPrice.com reported that the agreement could exempt Alberta’s oil industry from certain environmental laws, a provision that has drawn scrutiny from critics.
Carney has framed the proposal within a broader strategy to reduce Canada’s economic dependence on the United States. He has said that U.S. tariffs imposed by the Trump administration exposed Canada’s vulnerability in relying so heavily on one export market.
Despite those concerns, the U.S. remains Canada’s largest oil customer, receiving more than 90% of Canadian oil exports.
Focus shifts toward Asia
“At the core of the agreement, of course, is a priority to have a pipeline to Asia that’s going to make Canada stronger, more independent, more resilient, more sustainable,” Carney said.
Alberta Premier Danielle Smith welcomed the move, saying it signaled the end of what she described as the province’s “dark times.”
While details about the pipeline’s route, capacity, and construction timeline remain limited, the renewed discussion underscores how global energy politics, trade relationships, and environmental debates continue to shape Canada’s oil strategy years after Keystone XL was shelved.