The Keystone XL pipeline project is a controversial plan to construct a 1,700-mile oil conduit from the oil fields of Alberta, Canada to the refineries along the Texas Gulf Coast. The original Keystone pipeline project was abandoned in 2021 but the change in the U.S. presidency in 2025 appears to have reopened the possibility of its construction. Its resumption appears unlikely, however. The original developer has indicated no interest in restarting the project.

President Donald Trump granted a permit for the construction of the pipeline in March 2019 during his first term and after years of debate. President Joe Biden then revoked the permit shortly after taking office in January 2021. President Trump rescinded Biden's revocation in a January 2025 order days after taking office for his second term.

Understanding the Keystone XL Pipeline

The original Keystone pipeline was proposed by TransCanada Corp i🌺n a press 💖release on Feb. 9, 2005.

The press release said, "TransCanada is in the business of connecting energy supplies to markets and we view this opportunity as another way of providing a valuable service to our customers. Converting one of our natural gas pipeline assets for oil transportation is an innovative, cost-competitive way to meet the need for pipeline expansions to accommodate anticipated growth in Canadian crude oil production during the next decade."

The first phase of the pipeline we🗹nt from Hardisty, Alberta to the junction at Steele City, NE then on to the Wood River Refinery in Roxana, IL and the Patoka Oil Terminal Hub noꦺrth of Patoka, IL.

Section two ran from Steele Cit🌳y, NE south through Kansas to the oil hub and tank farm in Cushing, OK then further south to Nederland, TX to serve refineries in the Port Arthur, TX area.

The third phase was the Houston Lateral pipeline which would transport crude oil from the pipeline in Liberty County, TX to refineries and terminals in the Houston area.

President Barack Obama announced in November 2015 that his administration would not grant additional permits for the construction of this pipeline to further their commitment to fighting climate change. President Trump then signed an executive order during his first week in the Oval Office in 2019, clearing the way for the pipeline project.

The Republican party believed that the construction of the pipeline would create more jobs and provide a boost to the economy. President Biden rescinded the construction permit for the Keystone XL pipeline on Jan. 20, 2021 when he took office after TC Energy said it was stopping construction earlier the same day.

How the Keystone Pipeline Works

The initial Keystone system transported diluted bitumen and synthetic crude oil from Alberta through Montana, South Dakota, Nebraska, Kansas, and Oklahoma to refineries located in Texas, Illinois, and Oklahoma. Canada has large reserves of oil locked in oil sands. This oil is considered heavy oil that requires a different refining process f�𒁏�rom other types of oil. The Keystone XL pipeline is estimated to be able to carry over 800,000 barrels of oil a day.

Criticism of the Keystone Pipeline

The Keystone pipeline has been criticized by environmental groups, politicians, and residents of the states through which the pipeline passes. These groups have raised concerns about the proposed route's proximity to the Sandhill region of Nebraska and the Ogallala aquifer which provides a significant portion of the water used to water crops in the United States. The bitumen carried by the pipeline to the United States will likely result in higher greenhouse gas emissions.

The National Resource Defense Council (NRDC) filed lawsuits in 2017, 2019, and in July of 2020 to stop the construction of the pipeline. Tar sands oil is much thicker and more corrosive than typical crude oil and is more prone to leaks and spills through the pipeline, according to the NRDC. The group stated that the spill in October 2019 resulted in 378,000 gallons of oil spilling in North Dakota.

The Bottom Line

The Keystone pipeline was initially launched to transport heavy oil from the oil sands of Canada to U.S. refiners. It almost immediately hit a brick wall of protest due to its anticipated environmental effects. President ෴Biden rescinded its construction permit in January 2021 and the pipeline shut down. President Trump then r♔escinded the revocation when he took office for his second term in January 2025.

Proponents of the pipeline say that it will increase the supply of oil to the United States and that oil coming from a friendly neighboring country will increase security. The pipeline's negative environmental impacts could be serious, however.