U.S. President Donald Trump has hinted that the Keystone XL oil pipeline project, previously abandoned by past administrations, may see a revival as part of a new trade agreement with Canada. While some industry experts view this as a political move, former executives and analysts suggest there may be more behind the statement.
In a recent social media post, Trump announced a temporary halt on new tariffs on Canadian goods, citing a “deal” with Canada that could potentially bring back the Keystone XL Pipeline, a project previously halted by his predecessor, Joe Biden. Prime Minister Mark Carney has not publicly addressed Trump’s remarks.
Dennis McConaghy, a former executive at TransCanada Corporation (now TC Energy), sees Trump’s signal regarding Keystone XL as a strategic move amid ongoing trade negotiations. Since imposing tariffs on Canadian goods in 2025, Trump has maintained a stance of not needing anything from Canada, despite certain exemptions for key commodities like oil and minerals.
However, experts like Carlo Dade from the University of Calgary caution that reviving the Keystone XL project could face significant challenges, including political and environmental opposition. Valérie Beaudoin, a member of the federal government’s Advisory Committee on Canada-U.S. Economic Relations, believes that while Carney may find it easier to push for Keystone XL, the project could pose difficulties for Trump, especially with the uncertainty of future administrations.
The Keystone Pipeline System, owned by South Bow Corp., plays a crucial role in delivering Canadian and U.S. crude oil to American refineries. Despite Trump’s recent hints at reviving Keystone XL, questions remain around the project’s feasibility and potential obstacles.
South Bow, which emerged in 2024 following a shift towards natural gas by TC Energy, is exploring the Prairie Connector project with Bridger Pipeline. This initiative aims to utilize parts of the Keystone XL pipeline for increased crude oil exports to the U.S. While the project shows promise, final decisions are pending, highlighting the complexities involved in such ventures.
