Even if it was expected, the report that the incoming Biden administration would rescind the Keystone XL’s (KXL) cross-border permit—effectively killing the 12-year-old project—was a blow to the oil and gas industry’s system.
Announced 12 years ago, TC Energy Corp.’s KXL is designed to move up to 830,000 bbl/d of Canadian crude from Alberta to Nebraska.
The timing of the expected announcement caught some off guard despite Democrat Joseph R. Biden Jr. inauguration as the 46th U.S. president scheduled for Jan. 20.
“We are not surprised the pending decision was reaffirmed given rhetoric back in May that Biden opposed the project—KXL has already been removed from our estimates,” Tudor, Pickering, Holt & Co. said in a report. “The timing is more of a surprise, suggesting the new administration plans to make a definitive pivot toward decarbonization on Day 1 as the U.S. re-enters the Paris agreement.”
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