Saskatchewan gov’t already working against Keystone cancellation

The Saskatchewan government is already working to stop the potential cancellation of the Keystone XL pipeline approval in the United States, according to Premier Scott Moe.

Over the weekend, it came out that U.S. President-Elect Joe Biden intends to roll back the approval for the Keystone XL pipeline expansion as one of his first acts in office.

On Monday afternoon, Moe said Saskatchewan is already reaching out to its contacts in Washington, and he expects Prime Minister Justin Trudeau is doing the same.

“I would ask that the prime minister put the full weight of the Government of Canada behind advocating on behalf of this pipeline and what it can do, not only for Canadian energy, sustainability and competitiveness, but what it can do for North American energy, sustainability and competitiveness,” said Moe.

When asked what a Canadian province can really do, Moe pointed to the province’s role in the USMCA negotiations.

“It was an all hands-on-deck approach,” said Moe.

He said while the federal government was involved with the Trump administration, the provinces were dealing with congressional leaders, senate delegates and governors.

Moe thinks it’s imperative that Biden and his administration hear the case for the pipeline expansion to continue.

“We have some work to do in the days ahead and we’d ask the Biden administration to listen and make himself aware of the merits that this project has, not only on the economic side, not only on the opportunity that we have for jobs from Regina right down to the Gulf Coast but also on the environmental side,” said Moe.

Moe argues the oil coming through the pipeline from the Lloydminster area from companies like Husky and Serafina Energy — which have endeavoured to reduce their emissions of late — are a more sustainable choice for energy than getting oil from places like Venezuela and OPEC.

Moe believes the intention to cancel the pipeline’s approval is concerning both for Saskatchewan and Canada.

“If, on the very first day (of this term), President-Elect Biden is going to make a policy decision like this … it doesn’t speak well to the relationship a Biden administration or the U.S. is going to have with Canada in the years ahead,” Moe said.

If all the efforts are in vain and Biden goes ahead with his executive order, Moe said there will be effects in Saskatchewan — all of which amount to a loss of the positive effects of the expansion.

Moe said Saskatchewan would continue on with its restricted pipeline capacity and the province would continue to have its inflated oil differential.

“Just last year the differential in Saskatchewan was about $900 million with a cost to the industry (and) over $50 million in the cost to the Saskatchewan government. That can rise to well in excess of $1 billion in years when we’re not battling a global pandemic, for example,” Moe said.

Biden is to be inaugurated as the 46th U.S. president on Wednesday.