In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian

In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian

‘Keystone is dead’: former senior Obama adviser

It’s time for Canada to get over the demise of the Keystone XL pipeline expansion

A senior adviser to two former U.S. presidents delivered a stark message Friday to Canadians hoping for the resurrection of the Keystone XL pipeline: get over it.

The project is gone and not coming back, said John Podesta, who was White House chief of staff in the final years of Bill Clinton’s second term and a senior counsellor to Barack Obama.

“I think Keystone’s dead,” Podesta told an online panel discussion hosted by Canada 2020, a prominent think-tank with deep ties to the federal Liberal party.

President Joe Biden signed an executive order on his first day in office that rescinded predecessor Donald Trump’s decision to let the pipeline project cross the Canada-U.S. border.

“He’s withdrawn the permit, he’s not going back. He made that commitment,” Podesta said of the president.

“We’ve just got to get over it and move on and find these places on clean energy where we can co-operate… I think there’s no turning back at this point.”

Podesta was joined by Gerald Butts, a former principal secretary to Prime Minister Justin Trudeau who’s now vice-chairman at the political-risk consultancy Eurasia Group.

Butts was less declarative about Keystone XL and acknowledged the impact the decision will have on a Canadian economy that’s heavily dependent on the health of the Alberta oilpatch.

But he agreed the time has come to move on.

“There’s no changing the current administration’s mind,” Butts said.

“We should spend as much time as possible on the things where we agree and minimize our disagreements, as most productive relationships do.”

The expansion, first proposed in 2008, would have ferried more than 800,000 additional barrels a day of diluted bitumen from Alberta to refineries and ports along the U.S. Gulf Coast.

Its demise, Butts said, has more to do with an “astronomical increase” in domestic oil and gas production in the U.S. in the intervening years than anything Canada could ever say or do.

“Presidents Trump, Obama and Biden had something that no president really since Eisenhower, maybe even Truman, has had at their disposal when it comes to oil and gas, and that is choices,” he said.

“They’ve exercised those choices to the detriment of the Keystone pipeline and to the broader Canadian economy.”

Biden’s critics, meanwhile, show no signs of planning to give up the fight.

Alberta Premier Jason Kenney, whose provincial government is invested in Keystone XL to the tune of about $1 billion, has all but declared war, promising legal action and calling on the federal government to consider “proportionate economic consequences.”

Republicans on Capitol Hill, particularly those representing Midwest states with thousands of jobs dependent on the project, have also continued to question the president’s priorities.

The Keystone XL decision quickly focused attention on the potential fates of two other prominent cross-border pipelines, both owned by Calgary-based Enbridge Inc.

One is Line 3, which crosses the Canada-U.S. border in Minnesota and links the Alberta oilsands with the westernmost tip of Lake Superior. It’s set for a $9.3-billion replacement.

The other, Line 5, picks up where Line 3 ends and runs through the Great Lakes to Sarnia, Ont. Michigan Gov. Gretchen Whitmer wants Line 5 shut down, an order Enbridge is fighting in court. It would rather replace a portion of the pipe.

The White House has not signalled a direction on those projects except to say they are “part of what our climate team is looking at and assessing,” in the words of press secretary Jen Psaki.

That may reflect the competing interests that are likely at work within the Biden administration itself, said James Lindsay, senior vice-president at the Council on Foreign Relations.

“This is a case in which you have elements of the Biden coalition or constituency, in essence, at odds,” Lindsay told a briefing last week with the Washington Foreign Press Center.

Climate hawks want pipelines shut down to limit U.S. dependency on fossil fuels, while labour leaders and economic experts argue in favour of good, sustainable jobs, he said.

Proponents also argue that since both Enbridge projects involve replacing existing lines, the case for allowing them to proceed should be easier to make, he added.

“The challenge for a Biden administration is the reality that even when you want to work with close partners, there are going to be issues over which you disagree,” Lindsay said.

“You want to work with others that means to some extent you have to acknowledge their interests. But at times your own interests may take you in a different direction.”

This report by The Canadian Press was first published Feb. 12, 2021.

READ MORE: Biden will try to close Guantanamo after ‘robust’ review

READ MORE: Canadians divided over Keystone pipeline, despite U.S. president’s permit pullback

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Donald Alan Sweet was once an all star CFL kicker who played for the Montreal Alouettes and Montreal Concordes over a 13-year career. Photo courtesy of Mission RCMP.
Retired Mission teacher and star CFL kicker charged for assault, sexual crimes against former students

Donald Alan Sweet taught in school district for 10 years, investigators seeking further witnesses

Members of the Abbotsford Community Action Team include (from left) Bev Olfert, Rebecca Tice, Tally Clement, Const. Mary Boonstra, Mandy Aujla, Wanda Phillips and Devinder Dherari-Sidhu. (Submitted photo)
Abbotsford group raises awareness about sexual exploitation of youth

Community Action Team uses posters, stickers and online information

The driver of a pickup truck failed to stop after knocking down a wooden fence on March 3, 2021. (screen grab)
VIDEO: Footage catches pick-up driver smashing fence on Abbotsford/Langley border

Driver came forward after video circulated on social media

Police tape is shown in Toronto Tuesday, May 2, 2017. Statistics Canada says the country's crime rate ticked up again in 2018, for a fourth year in a row, though it was still lower than it was a decade ago. THE CANADIAN PRESS/Graeme Roy
CRIME STOPPERS: ‘Most wanted’ for the week of March 7

Crime Stoppers’ weekly list based on information provided by police investigators

Free Reformed Church is seen as people attend service, in Chilliwack, B.C., on Sunday, Feb. 21, 2021. Lawyers for the British Columbia government and the Justice Centre for Constitutional Freedoms are back in B.C. Supreme Court today, squaring off over the legality of COVID-19 rules that prohibit in-person religious services. THE CANADIAN PRESS/Darryl Dyck
B.C. top doctor has power to restrict access to a place during health hazard: lawyer

Under B.C.’s Public Health Act, Jacqueline Hughes says, Henry can restrict or prevent entry to a place

The James C Richardson Pipe Band marches in a Remembrance Day parade on Nov. 11, 2019 in Chilliwack. Wednesday, March 10 is International Bagpipe Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of March 7 to 13

International Bagpipe Day, Wash Your Nose Day and Kidney Day are all coming up this week

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

The family of injured Willoughby resident Ronald Gerald Jesso is hoping someone saw something that will help solve the mystery of how he came to be so badly hurt on the morning of Feb. 22. Jesso is still in hospital. (Jesso family/Special to Langley Advance Times)
An appeal to help solve the mystery of an injured Langley man

Family of Ronald Gerald Jesso asks witnesses to come forward

During a press event on March 6, Const. Alex Berube, media relations officer for the West Shore RCMP, addressed a deadly shooting that occurred in Metchosin the night before. (Devon Bidal/News Staff)
VIDEO: One man shot dead on Vancouver Island in ‘targeted incident’

Highway 14 reopens following multi-hour closure for investigation

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. RCMP Lower Mainland District officer, Asst. Commissioner Stephen Thatcher presents RCMP blankets to (from left) Chief James Hobart, Chief Maureen Chapman, Chief Derek Epp and Chief Mark Point. (RCMP)
Historic agreement significantly expands Indigenous role in Lower Mainland policing

Community Safety Agreement builds relationship of ‘trust, communication and prevention,’ says Chief

Most Read