Canada discusses Keystone XL revival with Trump administration officials

Canadian officials spoke to Trump administration representatives about a proposed revival of part of the canceled Keystone XL oil pipeline in a meeting in Houston this week, Canada’s Natural Resources Minister Tim Hodgson said Tuesday.

The project proposed by Canadian pipeline company South Bow and its U.S. partner Bridger Pipeline - which could increase Canada’s crude exports to the U.S. by more than 12 per cent if it goes ahead - was one of the topics Hodgson said he and Canada’s Ambassador to the U.S., Mark Wiseman, discussed with U.S. Energy Secretary Chris Wright and U.S. Secretary of the Interior Doug Burgum.

Canada is framing the prospect of a new cross-border oil pipeline as a way it can help the U.S. achieve energy security even as the war in Iran disrupts supplies and raises prices for consumers, Hodgson said in an interview at the CERAWeek by S&P Global conference.

“Yes, (the U.S.) are the largest producer of oil in the world, they’re at 12 to 13 million barrels per day. But they consume 20,” Hodgson said. “And they understand that Canada provides about 63 per cent of that difference.”

U.S President Donald Trump’s tariff wars and annexation threats have strained relations with Canada. But Trump has also repeatedly called for lower oil prices and many U.S. refiners depend on the roughly 4.4 million bpd of exports that Canada sends south of the border.

Hodgson declined to say whether the Trump administration has indicated that it will support the South Bow/Bridger project or make any attempt to fast-track the U.S. regulatory approvals that are required.