Analyst says Keystone cancellation would be a ‘slap in the face’

President-Elect Joe Biden is expected to cancel permits for the proposed Keystone XL pipeline, a move that one analyst calls a bad sign for Canada-U.S. relations.

“It’s a political slap in the face for Mr. Trudeau and all Canadians. Our best friend is now sort of not our best friend anymore,” said Roger McKnight, senior petroleum analyst for En-Pro International.

In Canada, the fate of the project has become a hot-button topic politically.

Saskatchewan Premier Scott Moe said the government will be working its contacts in Washington, advocating for the project.

Prime Minister Justin Trudeau told reporters Monday morning his government has been in favour of the pipeline for years and will continue to advocate for its merits, including job creation and energy security.

McKnight told the Greg Morgan Morning Show on Tuesday that Canada has been left without many backup options, although he pointed out other pipelines like the Trans Mountain Expansion and Line 3 expansion.

“We spent the last 11 years pushing the XL without even considering that it may not go through and in my mind, I don’t think it’s going to go through,” he said.

“I think there will be a lot of legal ping-pong balls going back and forth here which may delay the final decision.”