President Trump Approves Construction of Keystone XL Pipeline from Alberta to Nebraska

Following through on a January executive action, President Trump announced Friday that he was approving the oil pipeline that his predecessor had rejected over a year ago. Oil is already flowing from Steele City, Nebraska to Gulf Coast refineries.

3 minute read

March 27, 2017, 8:00 AM PDT

By Irvin Dawid


W-S_125_pipe_yard

PROJECT_MANAGER / Flickr

On March 24, President Trump's State Department "signed and issued a Presidential Permit to construct the Keystone XL Pipeline," announced the Calgary-based pipeline builder, TransCanada Corporation. As posted in January upon the president's signing a memorandum giving conditional approval to the Alberta to Nebraska pipeline, the pipeline will carry oil sands crude from Alberta and Bakken oil from North Dakota to the Gulf Coast refineries.

As readers who have followed the nine-year Keystone XL saga (see the Associated Press timeline, which begins in March 2008 with the original Keystone pipeline approval and September 2008 filing by TransCanada for a new Keystone XL routewill recall, former President Obama rejected the trans-national pipeline on Nov. 6, 2015.

Oil has been flowing through the southern, 487-mile leg of the pipeline (Phase III) from Cushing, Okla. to the Port Arthur, Texas region since January 2014. Phase II, from Steele City to Cushing, began operation in 2011. All that was missing was that Presidential Permit to enable a new (hence the "XL") trans-national crossing that required a Republican president to succeed President Obama.

Keystone Pipeline Route

Courtesy of Wikipedia: Keystone Pipeline Route, Phases 1 through 4.

However, the saga doesn't end with Friday's approval. The 1,179-mile Phase IV "shortcut" running from the oil sands of Alberta, Canada, through Montana to Steele City, Nebraska still faces hurdles before it can transport 830,000 barrels a day of oil sands crude from Alberta and Bakken crude from North Dakota, reports Clifford KraussThe New York Times' national energy business correspondent.

It needs the approval of the Nebraska Public Service Commission and local landowners who are concerned about their water and land rights. Protests are likely since the project has become an important symbol for the environmental movement, with the Canadian oil sands among the most carbon-intensive oil supplies

Krauss describes the "mixed-blessing" reaction by Prime Minister Justin Trudeau: good for the Canadian economy, but a likely setback for meeting his climate targets. [See related post this month on Trudeau's award from the energy industry.]

What happened to U.S.-manufactured steel for the pipeline?

Remember President Trump's insistence, solidified in a presidential memorandum on Jan. 24, that pipelines that run through the United States be manufactured domestically?

"We are -- and I am -- very insistent that if we're going to build pipelines in the United States, the pipe should be made in the United States," Trump said on Jan. 24. [Cleveland.com]. Krauss writes that "the White House has since suggested that the Keystone project would not be subjected to those rules because it is not a new project."

However, the Sierra Club provides a different explanation for Trump's reversal: "According to reports, TransCanada's threat to continue [it's $15 billion] NAFTA suit contributed to the White House decision to renege on Trump's promise that the pipeline would be made with U.S. steel." An hour after President Trump made his announcement, TransCanada dropped its suit, the Club reports.

Notwithstanding President Trump's announcement in the White House on Friday that "[i]t’s a great day for American jobs and a historic moment for North American and energy independence," don't expect President Trump to appear at any Ohio steel plants announcing new jobs.

Friday, March 24, 2017 in The New York Times - Energy & Environment

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Interior of Place Versailles mall in Montreal, Canada.

Montreal Mall to Become 6,000 Housing Units

Place Versailles will be transformed into a mixed-use complex over the next 25 years.

May 22, 2025 - CBC

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 28, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Cyclist rides in protected bike lane in Jacksonville, Florida.

Jacksonville Adding New Bike Racks

The city will add dozens of new bike racks over the coming months to prevent bike theft and reduce sidewalk clutter.

30 minutes ago - WOKV

Mid-rise brick buildings with retail and restaurants on ground floor on sunny day in Soho, Manhattan, New York City.

In Dense NYC, What Does ‘Human Scale’ Mean?

Advocates reject the NIMBY label, arguing that they seek a more sustainable, incremental pace of growth modeled on mid-rise neighborhoods.

1 hour ago - Next City

Nevada State Senate building.

Nevada Legislature Unanimously Passes Regional Rail Bill

If signed by the governor, the bill will create a task force aimed at developing a regional passenger rail system.

May 28 - KRNV News 4