Sunday night, smartphones across Canada began to vibrate with some American news with particular relevance for the Canadian economy. Sources report that it appears president-elect Joe Biden plans to cancel the American permit for the Keystone XL pipeline project his first day in office, later this week. The move, if executed, will be felt throughout the Canadian economy and political landscape. Biden’s Democratic predecessor, President Barack Obama, had opposed the pipeline and the project appeared to be largely dead at the beginning of 2016. President Trump campaigned on restarting the project, and during his time in office he managed to give it new life. But President-Elect Biden has made no secret of the fact that he opposes the project; his planned appointment to the Department of Interior, Deb Haaland, may have had some influence on the decision as well. The news reported Sunday night seemed to come to Canada both as a shock and as an inevitability. Within hours of the news, various Canadian political parties and their leaders were presenting their positions on an issue—key to the Canadian economy—that could be discussed in the next Canadian election. The pipeline, if completed, would carry bitumen to Nebraska, and join an existing pipeline capable of taking oil to international markets in the Gulf of Mexico. Alberta, , will see its capacity of bringing its main export to the global marketplace if Biden executes the project later this week.
The Globe and Mail’s article on Biden’s upcoming decision is likely the most thorough, and it subtly walks us through the future political stances Canada’s major political players will take in the aftermath of this decision. The Canadian Ambassador to the U.S. issued a statement that indicated it would continue to work on promoting the project, suggesting that the current Liberal government will continue to position itself as a supporter of the project and willing to fight for it. Conservative Leader Erin O’Toole—a potential challenger to Prime Minister Justin Trudeau—framed the cancellation as devastating for the Albertan, Canadian, and American workers, as well as throwing America into deeper economic and political dependence on OPEC countries. Alberta Premier Jason Kenney presented many of the same talking points, underlining, in particular, the economic devastation the move would bring to a province already struggling under the pandemic and the impact global events have had on the price of oil. Alberta NDP leader Rachel Notley, foregrounding what will likely be the NDP’s approach in any coming election, took what might be called the ‘you shouldn’t have ’ approach: she pointed out that Alberta’s trust in a single economic industry and its huge economic investment in a single infrastructure project—a project dependent on the uncertain approval of a foreign government with its own energy priorities—have proven economically . The Green Party’s Annamie Paul simply praised Biden’s potential move as “true climate leadership.”
Interesting, but telling omissions: as of this writing, Monday morning, January 8th, neither The New York Times nor the Washington Post—America’s papers of record—have published a single piece on a decision that will have such a huge impact on the Canadian economy. In the face of a pandemic and massive social unrest, America’s political priorities are elsewhere right now: the Keystone project is an American afterthought at best.
by Nathan R. Elliott
i. “Biden indicates plans to cancel Keystone XL pipeline permit on 1st day in office, sources confirm.” CBC. Jan 17, 2021. 5 mins. Intermediate.
ii. “Biden to cancel $9bn Keystone XL pipeline’s permit, says source.” The Guardian. Jan 18, 2021. 2 mins. Intermediate.
iii. “Biden picks Deb Haaland as first Native American interior secretary.” The Guardian. Dec 18, 2021. 3 mins. Intermediate.
iv. “Joe Biden plans to block Keystone XL pipeline as one of first acts in White House.” Jan 17, 2021. 6 mins. Intermediate.