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Trump win and what it means for Canada

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World Pipelines,

In the early hours of Wednesday 9 November, Americans elected Donald Trump as their next and 45th president.

During Trump’s campaign, he has discussed what his presidency could mean for other countries, especially Canada.

Trump, who aims to lift restrictions on oil and gas companies as well as increase fossil fuel production as a means for creating jobs, intends to approve pipeline projects.

Rejected by US President Barack Obama, TransCanada’s Keystone XL pipeline expansion is one project that Trump is enthusiastic about restarting.

The US$8 billion Keystone XL pipeline would transport crude oil from Alberta (Canada) to refineries on the Gulf Coast of Texas (US).

Trump has stated that within the first 100 days of being in office, he will invite TransCanada to renew it’s currently vetoed permit application to construct the pipeline. Additionally, should the pipeline be approved, Trump has stated that America must reap some of the profits. He also noted that the pipeline would create approximately 42 000 jobs.

As Canadian Prime Minister Justin Trudeau supported the Keystone XL, it can be anticipated that renewing the pipeline application will be welcomed by Canada’s government. Should the line be constructed, it will also benefit Alberta’s economy.

However, despite his support for pipelines, some believe Trump will hinder Canada’s economy.

Jennifer Winter, Assistant Professor of Economics at the University of Calgary, stated: "[Trump is] very much in favour of increased fossil fuel development in the US. This means that with increased development of its own fossil fuels, the US would rely less on Canada's oil reserves. This could mean less product sold and less international investment. [So] it's a bit of a wash, though we know how long pipelines take to get built these days. So I would say, based on that, Donald Trump is not as good for Alberta."

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