Company halts work on Keystone XL oil pipeline

TORONTO — Construction on the long disputed Keystone XL oil pipeline halted Wednesday as incoming U.S. President Joe Biden revoked its permit on his first day in office.

The 1,700-mile pipeline would carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast, passing through Montana, South Dakota, Kansas, Oklahoma and Nebraska.

“The Permit is hereby revoked,” Biden’s executive order says. “Leaving the Keystone XL pipeline permit in place would not be consistent with my Administration’s economic and climate imperatives.”

Keystone XL President Richard Prior said over 1,000 jobs, the majority unionized, will be eliminated in the coming weeks. “We will begin a safe and orderly shut-down of construction,” he said.

First proposed in 2008, the pipeline has become emblematic of the tensions between economic development and curbing the fossil fuel emissions that are causing climate change. The Obama administration rejected it, but President Donald Trump revived it and has been a strong supporter.

The premier of the oil-rich Canadian province of Alberta called Biden’s decision an “insult” and said the federal Canadian government should impose trade sanctions if it is not reversed. Canadian Prime Minister Justin Trudeau took a conciliatory tone.

“We are disappointed but acknowledge the President’s decision to fulfil his election campaign promise on Keystone XL,” Trudeau said in a statement.

White House press secretary Jen Psaki said Biden will call Trudeau on Friday, the first call with a foreign leader after Biden took the oath of office. Psaki said the pipeline will be discussed.

Alberta Premier Jason Kenney said Biden’s decision is a gut punch for his province, which has a stake in the project.