TRUMP APPROVES KEYSTONE
For the past decade or so, pipeline activism had a good run. Friday’s approval by U. S. President Donald Trump of the Albertato-Texas Keystone XL pipeline, during an extraordinary White House moment for TransCanada Corp. chief executive Russ Girling, confirms that as a movement its heyday has come and gone.
A key reason is that government leaders are no longer caving in, having realized that the majority stands behind them.
“I know the voters appreciate this, some of them expressed it very, very strongly, and the workers definitely appreciate it,” Trump said in approving the long- delayed presidential permit, as Girling, who endured years of personal attacks, lawsuits and political footdragging, stood nearby.
PIPELINE WINS ‘HISTORIC’ TRUMP APPROVAL, BUT THE BATTLE ISN’T OVER JUST YET
Trump was echoing the findings of countless opinion polls in the U.S. and Canada that consistently showed support for the project.
Some activists argue Trump’s approval of KXL was expected since he’s so connected to the oil industry.
Yet even in Canada, Prime Minister Justin Trudeau, British Columbia’s Christy Clark and Alberta Premier Rachel Notley have taken the side of pipelines, despite facing enormous pushback from environmentalists to deny permits. Trudeau and Notley, in particular, are no oil lovers.
In a statement after Trump’s announcement, however, Notley congratulated TransCanada “for the hard work they put into this approval.”
“While Keystone XL progresses, we are also going to continue our work to make sure we can get Alberta’s resources to Canadian tidewater — creating jobs, helping our energy industry grow and diversifying our export markets,” Notley said.
British Columbia’s coming provincial election, for which environmentalists are mobilizing to defeat Clark for her support of Kinder Morgan’s Trans Mountain pipeline, will be another test of whether the movement has any remaining political capital, or whether voters have become so desensitized to its hyperbole and antics they have moved on.
Like Keystone XL, other major high profile projects targeted for obstruction are moving forward. The Dakota Access pipeline is being filled and Energy Transfer Partners LP, the majority owner, plans to begin shipping oil in the first half of the year.
Enbridge Inc.’ s Line 3 replacement program is on track for completion in 2019. Kinder Morgan’s Trans Mountain pipeline has renewed shipping commitments and is aiming for completion in 2019.
To be sure, one project has been shelved, Enbridge’s Northern Gateway pipeline, and one project remains in play, TransCanada’s Energy East, but the pipeline bottlenecks are being removed and a sense of normalcy is returning to the oil business.
But there’s still plenty of room for disruption. Trans Mountain alone is fighting a dozen lawsuits. In the case of Keystone, there are more hurdles in Nebraska, where the pipeline still needs to get state permits, a process expected to take eight months. Activists are promising legal challenges, too.
To be sure, pipeline activism has been successful in delaying projects, increasing costs and bringing uncertainty to the business. It’s also caused divisions that will take years to mend. Canada’s oilsands have seen the departure of important international players.
But as a way to deter fossil fuel production, it’s been a failure. As widely predicted, i nvestment has s i mply moved to paths with less resistance.
From Canada’s north, capital has poured into tight oil in the United States, which is much closer to activists’ own backyards. The assets sold by multinationals have been purchased by Canadian companies, which will continue to grow them.