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After a decade of protests and political reversals in the U.S., the Canadian company behind the controversial Keystone XL oil pipeline says it has made a final decision to build the long-delayed project.  Once completed, it would deliver more than 830,000 barrels per day of crude oil from Alberta's oil sands, or "tar sands," region to the United States.

TC Energy, formerly known as TransCanada, 

 the project will invest $8 billion into the North American economy and provide "thousands of well-paying jobs during construction."

That may be welcome by some as economies have taken a hit from the Coronavirus global pandemic. But others worry construction workers traveling to rural communities along the pipeline route will help spread the disease. The 1,210 mile pipeline would be built between Hardisty, Alberta, and Steel City, Nebraska. 

"Our rural communities are strained as it is for medical supplies and hospital beds amid a global pandemic. TC energy must put an end to any construction in our small towns as the pandemic grows across our country," says Jane Kleeb, founder of Bold Nebraska. 

 before today's announcement that urged the company to stop all construction on the pipeline. TC Energy says it's taking the pandemic into account.

"During construction, we will continue to take guidance from all levels of government and health authorities to determine the most proactive and responsible actions in order to ensure the safety of our crews and community members during the current COVID-19 situation," says Russ Girling, President and CEO of TC Energy. 

Girling thanked politicians who helped move the project forward. He specifically mentioned President Trump, who 

restarted the Keystone XL approval process

 in 2015 citing environmental concerns. As 

, the kind of oil the pipeline would transport comes out of the ground as a thick, gooey substance that has to be processed with heat. That means it emits more greenhouse gasses than traditional oil drilling. 

Girling also thanked Alberta Premier Jason Kenney. As part of today's announcement the 

 it is investing about $1.1 billion dollars (C$1.5 billion) in the project, which the company says will cover construction costs through 2020. Alberta's government also is giving the company a $4.2 billion (C$6 billion) loan guarantee in 2021. 

"We cannot wait for the end of the pandemic and the global recession to act. There are steps we must make now to build our future focused on jobs, the economy, and pipelines," says Kenney.

Kenney's administration argues the Keystone XL will provide North America a stable, secure supply of crude oil and reduce reliance on the OPEC cartel. But the announcement comes as there is an 

 and prices have reached their lowest level in nearly two decades. 

Opponents argue the project has never been economically viable because tar sands crude is some of the most expensive in the world to produce.

"TC Energy never had the money to build this risky, unnecessary pipeline and now the Albertan government is bailing them out," says Kleeb. 

Kleeb predicts that if a Democratic president is elected in November they will once again block the project. While Bernie Sanders has long opposed the project, Joe Biden's name is noticeably absent from her group's 

 Aside from that, she says the project also faces legal challenges that still must be overcome. 

"The Keystone XL pipeline was a non-starter a decade ago and it remains one today," says Hannah McKinnon with 

 the economics of the project. McKinnon says governments should instead invest in cleaner forms of energy that can help meet goals to address climate change.

TC Energy claims the project is profitable. The company says it has 20-year agreements with companies to transport 575,000 barrels of crude a day, which the company estimates will generate $1.3 billion a year in profits. 

The company already has started construction work along the route and expects the Keystone XL pipeline will be in service in 2023. 

Business and Economic News

Environmental News

Jeff Brady

Author

The final decision to build the project comes after a decade of protests and political reversals in the U.S.  Now critics say construction poses a new risk with the coronavirus pandemic.

Builder of controversial Keystone XL pipeline says it's moving forward

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