U.S. President Donald Trump has hinted at the possibility of reviving a Canada-U.S. oil pipeline project, Keystone XL, which was previously scrapped by former administrations. Despite Trump’s remarks, industry experts believe the move could be more about politics than the actual petroleum industry.
The President announced a new trade agreement with Canada and a temporary halt on new tariffs on Canadian goods through social media just before the scheduled imposition of punitive tariffs. Referring to his predecessor as “Sleepy Joe Biden,” Trump mentioned the potential revival of the Keystone XL Pipeline.
While former executive Dennis McConaghy views Trump’s signal as a positive aspect for Prime Minister Mark Carney, other experts caution that reviving the project could face political and environmental challenges. Trump has been critical of Canada since imposing tariffs on various Canadian goods in 2025 but exempting certain crucial items like oil from these tariffs.
Although Trump’s mention of Keystone XL seems to be a shift from his previous stance on Canadian products, experts like Carlo Dade and Valérie Beaudoin remain skeptical about the project’s viability given potential future political changes. The move is seen as a strategic response to the policies of previous administrations and a way to exert pressure on Biden and the Democrats.
The Keystone Pipeline System, which delivers crude oil from Canada to American refineries, has been a focal point in Canada’s export strategy to the U.S. Despite the challenges faced by the Keystone XL project in the past, there are renewed discussions about its revival under the current political climate.
South Bow Corp., the company behind the Keystone Pipeline System, is exploring the Prairie Connector project in partnership with Bridger Pipeline. This project, using parts of the cancelled Keystone XL pipeline, aims to enhance Canada’s crude oil exports to the U.S. and meet the long-term demand for Canadian oil in the Gulf Coast refining market.
The future of Keystone XL and the Prairie Connector project remains uncertain, with South Bow yet to make a final investment decision. However, the company remains optimistic about the demand for Canadian crude in the U.S. market.