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Obama vetoing Canada’s Keystone XL project could be good in the long run

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World Pipelines,

Canada’s vote for a Liberal government – electing incoming Prime Minister Justin Trudeau – could give US President Obama a reason to make a hasty decision on vetoing TransCanada’s Keystone XL pipeline before the new government sets in.

There has been no recent news on Obama’s decision regarding the Keystone pipeline expansion project, and it is widely believed that the project will still be refused approval.

However, despite Trudeau supporting the Keystone XL expansion project, he will willingly accept rejection should Obama decide it. The reason? Trudeau intends to repair the broken relationship between the two countries – damage that was suffered due to former Canadian Prime Minister Stephen Harper.

Unlike Harper, Trudeau accepts issues of climate and environment. Trudeau stated at his first news conference as Prime Minister-Designate, that during a congratulatory call from Obama, he “indicated to Mr. Obama that I felt it was important that Canada demonstrates a level of positive engagement on the environmental file on the international stage. I look forward to demonstrating that we have a Canadian government now that understands the way to build a strong economy is to protect and defend our environment at the same time."

More information on Trudeau's environmental concerns here.

Should Obama veto the Keystone pipeline expansion project, it is suspected to be announced before Trudeau takes over.

James Coleman, Assistant Professor at the University of Calgary’s Haskayne School of Business stated: “It probably is the case that the sooner it happens, the better for him. If it’s going to be rejected, which I think most people think it is, the sooner the better so it can be attributed to Harper.”

More information on Canada's proposed pipeline projects and Trudeau's stance here.

Edited from various sources by Stephanie Roker

Sources: The Washington Post, Financial Post, CBC News, Bloomberg

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