The Canadian government has begun to exploit the current crisis caused by the Russian invasion of Ukraine to pressure the United States to revive the Keystone XL pipeline, to replace Russian supplies.

Canadian Alberta Premier Jason Kenney said during a press conference on Monday that the pipeline belonging to TC Energy could be built by the first quarter of next year if the US administration under President Joe Biden reverses its decision to cancel the project.

He claimed that the Keystone XL pipeline is capable of changing the situation in less than a year, explaining that the pipeline can transport about 900,000 barrels per day of Canadian oil sands to the United States, and that his country had begun construction operations before the project was canceled last year.

The pipeline had previously stirred wide controversy since the tenure of former US President Barack Obama, who rejected the pipeline due to environmental concerns, but former US President Donald Trump approved the project in 2017, and construction began in 2020.

Once US President Joe Biden took office, he canceled the oil pipeline permit, citing environmental concerns.

Oil Prices

Kenney’s comments come at a time when crude oil prices surged to record levels approaching $140 per barrel.

This was a result of the United States announcing that it is considering imposing sanctions on Russia related to oil imports.

At the same time, the US government began communicating with major oil-producing countries, including Venezuela, which is under US sanctions, to look for alternatives to Russian oil.

Additionally, negotiations with Iran resumed to revive the nuclear agreement for the return of Iranian oil to global markets.

In this regard, Alberta Premier Jason Kenney said it would be better for the United States to rely on its northern neighbor to supply crude oil instead of seeking to provide "oil from a tyrant," according to Bloomberg.

TC Energy indicated that the Keystone XL project was completed last June and said that the current Keystone system, built before the XL expansion proposal, will continue to provide a safe and stable energy source to meet growing demand in the United States.

However, the US government will have to mitigate the project's financial risks before TC Energy allocates funds to build the pipeline after it was canceled twice, according to Kenney’s statements.

Kenney stated that Alberta will produce and export record amounts of oil this year, and the Canadian province can increase its shipments abroad by about 10%, whether via current pipelines or railways.

He added that Enbridge Canada’s Pipeline 3 and the diluted bitumen extraction unit, which allows heavy oil to be transported to US refineries, will help boost exports.