President Trump issued a notice on Friday to push the Keystone XL pipeline forward in the hope of mapping the dispute over the project and getting it off the ground.
The Order acts as an approval of the pipeline, which replaces Trump's original approval of the project he issued shortly after he had taken a position in 2017. This order has been legally distorted, and was recently abbreviated by an American court decision that blocked construction until a new environmental impact statement could be implemented. Trump's new order aims to circumvent this decision.
TransCanada welcomed the decision by CEO Ross Girling, who said Trump "has been aware that he wants to create jobs and promote US energy security, and the Keystone XL pipeline does both these things." The pipeline company stated the executive order "clarifies Keystone XL & # 39; s national importance and aims to bring more than 1
However, the Sierra Club has rejected Trump's movement and argued that he is trying to violate environmental legislation. " continue to pursue all avenues available to ensure that this pipeline is never built, "Michael Brune, the CEO of Sierra Club said in a statement.
While Trump is trying to quickly clear the way for TransCanada, the latest leading order could be Trump's attempt to "overthrow our control system is nothing less than an attack on our constitution. It must be defeated, "says Stephan Volker, environmental group lawyer, to AP.
It's not clear what happens next. TransCanada still hasn't issued a final investment decision on the project and it still needs more permissions for The pipeline, especially in Nebraska, where it had to be redirected.
A few years ago, the project's shortage seemed to be almost a moot point, with other high-profile pipeline projects moving higher up the queue, but the recession of Pacific Gateway Pipeline, Energy East Pipeline and the surprising failure (perhaps only temporarily) of Trans Mountain Expansion have made Keystone XL more important than ever.
Western Canada Choose the wound pricing discount balloon last year, so much so that Albert's government has to issue mandatory upstream production cuts. several years ago, it was a common argument from industry that environmental resistance to the project was stupid, Because the oil would find a way to market in one way or another. However, wide discounts on WCS prices, mandatory production cuts and recent Canadian oil producers' decisions to keep up with new upstream investments indicate tough bottlenecks have a significant impact on supply.
Meanwhile, Enbridy's line 5 replacement and its line 3 replacement have also hit backlash recently. The update of both aging pipeline systems would add new takeout capacity, but more delays add to midstream woes.
All this means that the effort has never been higher for Keystone XL.
While Trump is trying to jump through the high-profile energy project, his efforts to smooth out multiple wells have also recently entered a legal wall. Last week, a federal judge stated that the Trump administration's efforts to open the Arctic and Atlantic islands for drilling were illegal, a decision that essentially puts 128 million hectares of Arctic and Atlantic land without borders.
On the way out of the door former President Obama banned drilling into Arctic and Atlantic oceans, banning Trump trying to roll back. Trump's team even hoped to deliver drilling contracts later this year. These plans are now tracked and could be out of the table unless Congress votes to return to the Obama honorary protection, a move that has hardly given rise to the composition of the House of Representatives. "President Trump's lawlessness is about to address him," said Erik Grafe, Earthjustice's chief lawyer, according to the Washington Post.
The oil industry is certainly not the only one interested in offshore drilling in the Arctic, given low oil prices and the high-profile errors in Royal Dutch Shell from several years ago. The Atlantic Ocean is also expensive and risky. But interest can grow and decrease depending on market conditions. The latest judicial decision is likely to pay tribute to Trump's efforts to revive the drilling plans.
Trump has a decent chance of winning a number of these energy cases if they make their way to the Supreme Court. But many cases will not go so far, which means that Trump's aggressive oil and gas drilling plans unfold more slowly than he wants.
By Nick Cunningham from Oilprice.com
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