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Alberta Prime Minister Jason Kenney is confident that the PCU government will be able to convince the administration of US President-elect Joe Biden to reconsider its position on the Keystone XL pipeline. (John Watson, MyGrandePrairieNow staff)
Alberta Prime Minister Jason Kenney is confident his administration can change the mind of US President-elect Joe Biden when it comes to completing the Keystone XL pipeline. Biden had promised to kill the project if he was elected, but Kenney argues that completing the pipeline is a win-win project that would play an important role in boosting the Canadian and American economies.
“Both Canada and the US need to focus on getting our economies moving again, and Keystone XL is a good way to do that. It’s creating jobs in both the US and Canada right now, and we look forward to telling our positive story about how Alberta energy, and Keystone as part of it, can strengthen energy independence, energy security and the US economy. USA
On a visit to Grande Prairie on Saturday, Kenney noted that the United States is by far Alberta’s largest trading partner. He adds that working with the Canadian federal government will also play a critical role in strengthening the relationship with our southern neighbors, especially during the COVID-19 pandemic.
“We sell about $ 90 billion worth of products to the United States each year. Overwhelmingly that is oil and that means Alberta is the largest source of energy for the United States, ”says Kenney.
Kenney contends that Biden’s position in the pipeline is based on information that is approximately 10 years out of date. The goal, he adds, is to request an opportunity to show how oil sands have significantly reduced the intensity of emissions.
“TC Energy, which develops the project, has partnerships with the First Nations of America, with the support of some of the largest unions in the United States, a majority, we believe, in the United States Senate, and among governors. and congressional leaders along the way, ”he says.
So far, the Keystone XL pipeline represents a $ 1.5 billion investment from Alberta. While Biden campaigned against the pipeline ahead of the coronavirus pandemic, Kenney hopes his administration is open to reconsidering its stance and being more sensitive to the business relationship.
He adds that while approving the pipeline investment in the shadow of the US elections was a risk, he believes it was the right decision.
“We don’t see it as a gamble. Obviously there was a risk [but] If we had not made that investment, the project would never have advanced. Gaining market access through pipelines is critical to the future of Alberta’s economy. We have always wanted to build as many pipes as possible; We weren’t prepared to put all of our eggs in the Trans Mountain basket that goes to Vancouver, which is owned by the federal government. Keystone XL, we made an investment there to start construction, in part to hedge our bets, in some way, and we are confident that we will continue with that project. “
Kenney estimates that when the COVID-19 pandemic slows to a manageable point and global energy demand begins to rebound, Alberta oil prices will rise between $ 60 and $ 75 CAD per barrel. He says demand for an immediately limited supply will not help Alberta unless more international pipelines can be accessed, to reduce price differences.
As a message to both Albertans and the Biden administration, Kenney says the Alberta government is not prepared to sit back and passively let others determine the future of the province.
“The case that we will present to a Biden administration is that if they don’t buy this heavy Alberta crude through KXL, then they have to buy it from the OPEC dictatorship of Venezuela. I think that case stands alone. “
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