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91ƵKeystone is dead91Ƶ: former senior Obama adviser

It91Ƶs time for Canada to get over the demise of the Keystone XL pipeline expansion
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In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb. THE CANADIAN PRESS/AP-Chris Machian

A senior adviser to two former U.S. presidents delivered a stark message Friday to Canadians hoping for the resurrection of the Keystone XL pipeline: get over it.

The project is gone and not coming back, said John Podesta, who was White House chief of staff in the final years of Bill Clinton91Ƶs second term and a senior counsellor to Barack Obama.

91ƵI think Keystone91Ƶs dead,91Ƶ Podesta told an online panel discussion hosted by Canada 2020, a prominent think-tank with deep ties to the federal Liberal party.

President Joe Biden signed an executive order on his first day in office that rescinded predecessor Donald Trump91Ƶs decision to let the pipeline project cross the Canada-U.S. border.

91ƵHe91Ƶs withdrawn the permit, he91Ƶs not going back. He made that commitment,91Ƶ Podesta said of the president.

91ƵWe91Ƶve just got to get over it and move on and find these places on clean energy where we can co-operate91Ƶ I think there91Ƶs no turning back at this point.91Ƶ

Podesta was joined by Gerald Butts, a former principal secretary to Prime Minister Justin Trudeau who91Ƶs now vice-chairman at the political-risk consultancy Eurasia Group.

Butts was less declarative about Keystone XL and acknowledged the impact the decision will have on a Canadian economy that91Ƶs heavily dependent on the health of the Alberta oilpatch.

But he agreed the time has come to move on.

91ƵThere91Ƶs no changing the current administration91Ƶs mind,91Ƶ Butts said.

91ƵWe should spend as much time as possible on the things where we agree and minimize our disagreements, as most productive relationships do.91Ƶ

The expansion, first proposed in 2008, would have ferried more than 800,000 additional barrels a day of diluted bitumen from Alberta to refineries and ports along the U.S. Gulf Coast.

Its demise, Butts said, has more to do with an 91Ƶastronomical increase91Ƶ in domestic oil and gas production in the U.S. in the intervening years than anything Canada could ever say or do.

91ƵPresidents Trump, Obama and Biden had something that no president really since Eisenhower, maybe even Truman, has had at their disposal when it comes to oil and gas, and that is choices,91Ƶ he said.

91ƵThey91Ƶve exercised those choices to the detriment of the Keystone pipeline and to the broader Canadian economy.91Ƶ

Biden91Ƶs critics, meanwhile, show no signs of planning to give up the fight.

Alberta Premier Jason Kenney, whose provincial government is invested in Keystone XL to the tune of about $1 billion, has all but declared war, promising legal action and calling on the federal government to consider 91Ƶproportionate economic consequences.91Ƶ

Republicans on Capitol Hill, particularly those representing Midwest states with thousands of jobs dependent on the project, have also continued to question the president91Ƶs priorities.

The Keystone XL decision quickly focused attention on the potential fates of two other prominent cross-border pipelines, both owned by Calgary-based Enbridge Inc.

One is Line 3, which crosses the Canada-U.S. border in Minnesota and links the Alberta oilsands with the westernmost tip of Lake Superior. It91Ƶs set for a $9.3-billion replacement.

The other, Line 5, picks up where Line 3 ends and runs through the Great Lakes to Sarnia, Ont. Michigan Gov. Gretchen Whitmer wants Line 5 shut down, an order Enbridge is fighting in court. It would rather replace a portion of the pipe.

The White House has not signalled a direction on those projects except to say they are 91Ƶpart of what our climate team is looking at and assessing,91Ƶ in the words of press secretary Jen Psaki.

That may reflect the competing interests that are likely at work within the Biden administration itself, said James Lindsay, senior vice-president at the Council on Foreign Relations.

91ƵThis is a case in which you have elements of the Biden coalition or constituency, in essence, at odds,91Ƶ Lindsay told a briefing last week with the Washington Foreign Press Center.

Climate hawks want pipelines shut down to limit U.S. dependency on fossil fuels, while labour leaders and economic experts argue in favour of good, sustainable jobs, he said.

Proponents also argue that since both Enbridge projects involve replacing existing lines, the case for allowing them to proceed should be easier to make, he added.

91ƵThe challenge for a Biden administration is the reality that even when you want to work with close partners, there are going to be issues over which you disagree,91Ƶ Lindsay said.

91ƵYou want to work with others that means to some extent you have to acknowledge their interests. But at times your own interests may take you in a different direction.91Ƶ

This report by The Canadian Press was first published Feb. 12, 2021.

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