U.S. President Donald Trump has hinted at the possibility of reviving the Keystone XL oil pipeline project, which was previously scrapped by past administrations, as part of a new trade agreement with Canada. However, industry experts are skeptical, suggesting that Trump’s statement may be more about politics than actual oil production.
Trump made the announcement on social media just before the implementation of new tariffs on Canadian goods was set to begin. He referenced the Keystone XL Pipeline, which was halted by his predecessor, Sleepy Joe Biden, implying that it could be resurrected. Prime Minister Mark Carney did not directly address Trump’s post.
Dennis McConaghy, a former executive at TransCanada Corporation, viewed Trump’s mention of Keystone XL as a strategic move to influence trade negotiations. Since imposing tariffs on Canadian products in 2025, Trump has been adamant that the U.S. does not rely on Canadian imports, despite certain exemptions such as oil and critical minerals.
Carlo Dade from the University of Calgary cautioned against premature excitement over the revival of Keystone XL, citing enduring political and environmental challenges. Valérie Beaudoin, an economic relations advisor, emphasized the potential difficulties for Trump in pushing forward with the project, especially with future leadership changes.
The Keystone Pipeline System, managed by South Bow Corp., plays a crucial role in transporting Canadian and U.S. crude oil to American refineries. While Trump’s interest in reviving the Keystone XL project has been met with mixed reactions, its future remains uncertain given the evolving market conditions and regulatory hurdles.
South Bow’s Prairie Connector project, a collaboration with Bridger Pipeline, aims to leverage existing Keystone XL infrastructure to boost Canadian oil exports to the U.S. Despite promising commitments from customers, the final decision on the project’s implementation is pending. South Bow CEO Bevin Wirzba remains optimistic about the long-term demand for Canadian crude in the U.S. market.
