Prime Minister Mark Carney and U.S. President Donald Trump, currently serving his second term, held a high-level meeting in Washington on Tuesday focused on trade, defence, and energy cooperation. According to sources familiar with the discussions, one of the key topics raised was the possible revival of the long-shelved Keystone XL pipeline project that would link Alberta’s oil sands to U.S. refineries.
The Keystone XL proposal emerged as part of broader discussions about tariffs on Canadian steel, aluminium, and vehicles—issues that have strained Canada-U.S. trade relations in recent years. Sources told Opitangloba Media News that President Trump appeared receptive to the idea of revisiting the project, although the conversation remained preliminary. Both leaders reportedly instructed their respective teams to explore the matter further in the coming days.
In a statement released Wednesday, Carney’s office said the meeting “focused on key priorities in trade and defence,” identifying “opportunities for material progress in steel, aluminium, and energy.” The statement did not specifically mention Keystone XL or any other energy infrastructure projects by name.
The keystone XL Project with a Controversial Past
The Keystone XL pipeline, first proposed in 2010, was designed to stretch 1,179 miles (1,897 kilometres) from Alberta, Canada, to Steele City, Nebraska. Once completed, it was projected to transport 830,000 barrels of oil per day, significantly boosting Canada’s export capacity to the U.S. However, the project has faced repeated political and environmental roadblocks.
Former President Barack Obama declined to issue a presidential permit for the project following concerns raised by the Environmental Protection Agency (EPA). Environmentalists and Indigenous communities opposed the pipeline, citing risks to ecosystems and the acceleration of carbon emissions. President Trump, during his first term, revived the project and allowed construction to begin, only for it to be halted again when President Joe Biden revoked its permits on his first day in office.
The project’s developer, Calgary-based TC Energy, officially abandoned Keystone XL in 2021, citing regulatory uncertainty and financial losses exceeding billions of dollars. A subsequent corporate spinoff, South Bow, assumed TC Energy’s oil pipeline assets but declared earlier this year that it had “moved on” from the Keystone XL project.
Mixed Political and Industry Reactions
Reaction to news of the pipeline’s possible revival has been swift and divided. Alberta Premier Danielle Smith welcomed the development, describing it as a positive sign for energy cooperation between the two countries. Speaking at a U.S.-Canada summit in Toronto, she stated, “We shouldn’t be threatening to sell the Americans less. We should be promising to sell them more.” Smith also said she viewed Alberta’s energy exports as part of a “broader renegotiation” of the U.S.-Mexico-Canada Agreement (USMCA) that could yield mutual benefits.
However, opposition voices across Canada remain firm. British Columbia Premier David Eby dismissed Alberta’s push for new pipelines as “fictional,” warning that such projects would jeopardize his province’s environmental integrity. Bloc Québécois Leader Yves-François Blanchet similarly criticized any attempts to revive Keystone XL, accusing Alberta of pursuing policies that would “destroy the environment of the whole planet.”
Meanwhile, industry stakeholders remain cautious. South Bow released a statement clarifying that it was “not privy to the ongoing discussions” but would “support efforts that enhance the transportation of Canadian crude oil.” Analysts note that, while the economic logic for such a pipeline remains strong amid rising global energy demand, political opposition and environmental concerns could once again prove decisive.
