“Look, they’re going to pump the oil, and it’s going to go someplace. It’s too valuable not to, and we still need the oil. So, it’s either going to be shipped to other countries, including China, which has not the same type of environmental regulations that we have when it comes to the processing of that oil, or it could come back down into the United States to the specific locations where they actually know how to process it, to actually do that crude oil,” Rounds explained.
“This was the most efficient way to do it. It’s still going to get moved, but now they’re probably going to have to go to rail cars, and when you go to rail cars, it’s not as safe. And so, this was simply the most efficient way to move about 830,000 barrels of crude oil per day, that now will probably go either by rail or it’ll go to another country.”
Rounds maintained the move will force a lot of the oil onto rail cars, displacing grain shipments from his state. He further lamented the loss of 10,000 expected jobs, including 2,000 Americans who were already working when Biden signed the executive order gutting the project.
Keystone XL is the fourth phase of development of the Keystone Pipeline, which adds a branch connecting terminals in Hardisty, Alberta, and Steele City, Nebraska, by a shorter route using a larger diameter pipe.
It has attracted attention after environmentalists singled out the project as a symbol of the battle against fossil fuels and for natural preservation. President Barack Obama temporarily lingered the project in 2015. President Donald Trump declared a presidential permit in 2017 to enable the project to go forward. Biden revoked Trump’s order on Jan. 20, 2021.
TC Energy Corp. is plotting to kill more than 1,000 construction jobs related to the halt of the Keystone XL pipeline expansion project. According to the Association of Oil Pipelines CEO Andy Black, the measure is tantamount to “killing 10,000 jobs and taking $2.2 billion in payroll out of workers’ pockets [and] is not what Americans need or want right now.”
Among many, Alberta Premier Jason Kenney is asking the prime minister to press the United States Administration for compensation amid the cancellation of the Keystone XL pipeline project.
Last spring, the Alberta government invested about US$1.1 billion (C$1.5 billion) in the project. Kenney has said the province has about $1 billion at risk if the project is killed.