Posted on: 01. 27. 21
January 20, 2021, signaled a change in power throughout the nation as President Joe Biden celebrated his inauguration into the presidency. As history has shown each time an opposing party takes power over another, immediate changes were made to kick off the administration’s future plans.
One of the most controversial decisions President Biden made during his first day in office was the revocation of the construction of the Keystone XL pipeline that his predecessor, Donald Trump supported.
When this happened, social media became a flurry of mixed knowledge and uncertainty for the success of the oil and gas industry in 2021.
The Breakdown of Pipeline Plans
The Keystone XL (KXL) pipeline is a project that was at least a decade in the making. It was planned to be a 1,200-mile pipeline that spanned from Canada to Southeast Texas. Had the KXL come to fruition, it would have carried 830,000 barrels of oil per day down its lengthy pipeline.
From the start of the project, local Native American tribes and climate activists protested the KXL with the goal of protecting land as well as decreasing potential climate change that they believed would result from the project.
Did the Industry See This Cancellation Coming?
As we mentioned in a previous article about the implications of who won the presidency, President Biden is someone who plans to halt fracking on Federal lands. We predicted that these actions could hinder current and future pipeline projects due to the Democratic party’s focus on creating clean energy.
So, we can’t say we weren’t surprised when the President ultimately canceled the KXL pipeline construction on his first day in office.
Who Does the Cancellation Impact?
Currently, the cancellation most heavily impacts that Canadian and American construction workers developing the pipeline. According to TC Energy, the company behind the KXL pipeline, the current number of jobs lost to the President’s decision is around 1,000 jobs spread across Canadian and American workers.
Will the Actual Fallout Live Up to the Political Fallout?
Since the executive order, the political fallout has become an issue across the internet. One of the benefits of the pipeline was its potential to employ thousands of oil and gas workers in the long term, but experts believe that the impact of this executive order will be less destructive than what social media influencers are spreading across their channels.
The pipeline was slated to end in Southeast Texas, and many are concerned that the cancellation will impact the local oil and gas economy. Experts state that if there is going to be any actual impact on the industry, it will be directed overseas and at Canada, which has pushed for the project in order to offset oil imports.
Aside from the loss of potential construction jobs, the KXL has been a politically contentious subject for a decade and is more of a political tug of war than something that currently impacts our industry.
What can Current Oil and Gas Companies Do About the Pipeline Revocation?
Although the KXL pipeline is no longer an industry goal, we must keep in mind that there are still several other pipelines and drill sites currently operating that provide jobs and oil and gas products to the customers we are dedicated to.
We will remain focused on providing facilities and production sites with, top-tier NGL storage, fuel conditioners, and other essential NGL equipment the industry relies on. The KXL issue may be a bump in the road, but our industry roots run deep, and we know that in time oil and gas will flourish again.
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