US President Donald Trump has hinted at the revival of a Canada-US oil pipeline project, Keystone XL, which was previously scrapped by former administrations. The President’s statement came in the context of a new trade deal between the two countries. However, industry experts suggest that the mention of Keystone XL may be more politically motivated than driven by the petroleum industry.
Trump made the announcement on social media just before new tariffs on Canadian goods were set to take effect. The Prime Minister of Canada, Mark Carney, did not directly address Trump’s post regarding Keystone XL.
Former executive Dennis McConaghy, who was involved with TransCanada Corporation, now TC Energy, noted that Trump’s mention of Keystone XL could influence the trade negotiations between the two countries.
Since imposing tariffs on Canadian goods in 2025, Trump has been vocal about reducing dependency on Canadian imports. Despite this stance, certain key Canadian products have remained exempt from tariffs.
Carlo Dade from the University of Calgary cautioned against premature excitement over the possible revival of Keystone XL, citing existing political and environmental hurdles.
Valérie Beaudoin, a member of Canada’s Advisory Committee on Canada-US Economic Relations, highlighted the complexities surrounding the project’s resurrection, especially considering potential future shifts in US leadership.
The Keystone Pipeline System, primarily transporting Canadian and US crude oil to American refineries, is currently owned by South Bow Corp. The company is exploring the Prairie Connector project, which could boost Canadian crude oil exports to the US significantly.
While Trump has expressed support for reviving parts of the Keystone XL project, uncertainties remain about its feasibility and completion. South Bow CEO Bevin Wirzba remains optimistic about the project’s potential value and long-term demand for Canadian crude in the US market.
