Canada cancels construction of important oil pipeline
Environmentalists are jubilant, while economists warn of job cuts and higher taxes.
Construction of Keystone XL oil pipeline worth $8 billion CAD, which was to be laid between the Canadian province of Alberta and the U.S. state of Nebraska, has been officially canceled. This was confirmed by the owner of the project, a representative of TC Energy.
Opinions on the event are divided. On the one hand, Alberta risks losing over $1 billion in lost revenue and a large number of jobs. On the other hand, environmentalists see the event as a victory.
"Canada has oil, but now we have less capacity to produce it," explains Richard Masson, a researcher at the University of Calgary's School of Public Policy.
Because of the situation, Masson said, nearby refineries may turn to other suppliers, such as Colombia or Saudi Arabia, for oil.
Keystone XL was designed to transport 830,000 barrels per day of crude oil from Alberta to Nebraska. From there, the crude was to go to one of the world's largest refining centers, which is located on the Gulf Coast. The pipeline was to be 1,947 km long.
TC Energy, which is based in Calgary, cancelled the project after a comprehensive review of its capabilities and consultation with the Alberta government. It is also noted that there have been disagreements between Canada and the United States over the construction issue. For example, Alberta Prime Minister Jason Kenney accuses US President Joe Biden of signing an order to cancel construction.
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