The multi-billion-dollar project has been repeatedly blocked by the previous Obama and Biden administrations
US President Donald Trump has announced plans to revive the Keystone XL oil pipeline, intended to transport oil sands crude from Canada to the US, vowing swift regulatory approvals for the long-abandoned project.
The Keystone XL pipeline, initially proposed in 2008, was designed to carry 830,000 barrels of oil per day from Canada’s tar sands to US refineries. It faced significant opposition from environmentalists and was repeatedly blocked by previous US administrations.
In October 2024, TC Energy, the original developer, spun off its oil pipeline business into South Bow Energy, which has since indicated no interest in resuming the project.
In a social media post on Tuesday, Trump urged TC Energy, which he claimed was “viciously jettisoned by the incompetent” Biden administration, to “come back to America and get it built—NOW!”
“I know they were treated very badly by Sleepy Joe Biden,” Trump added, emphasizing his commitment to the project.
“If not them, perhaps another pipeline company,” he continued, reiterating, “We want the Keystone XL pipeline built!”
During his first term in 2017-2021, Trump reversed former President Barack Obama’s rejection of the Keystone XL pipeline, arguing it would create jobs and reduce US dependence on foreign oil.
The move sparked backlash from environmental groups and Native American tribes, who had opposed the multi-billion-dollar project from the start, warning it could damage the environment and threaten indigenous communities’ way of life.
Despite Trump’s approval, construction was ultimately stopped in 2021 when then President Joe Biden revoked a key permit during his first week in office and halted new oil and gas drilling permits on federal land. Republicans later blamed Biden’s policies for record-high US gas prices, while Biden deflected responsibility, pointing instead to Russian President Vladimir Putin and the Ukraine conflict.
Trump’s renewed push for Keystone XL aligns with his broader energy policy favoring fossil fuel development. Since taking office, he has issued orders to open more American lands and waters for oil, gas, and coal extraction while suspending clean energy initiatives on federal land. These actions have been welcomed by the oil and gas sector but have once again drawn criticism from environmental groups and clean energy advocates.
Some industry experts remain skeptical about restarting the project, citing major physical, legal, and political barriers. They also note shifts in the energy market, including increased US oil production and expanded Canadian export infrastructure, which have reduced the economic incentives for Keystone XL.
“Chances are very low and probably zero that Keystone XL is revived,” said Rob Thummel, a senior portfolio manager at Tortoise Capital Advisors, in an interview with Barron’s.
Analysts say environmentalists will continue their opposition, citing concerns over carbon emissions and potential ecological damage.
