A legal fight that didn’t need to be
The provincial government of Alberta is entering into a legal battle with the United States over the cancellation of the Keystone XL pipeline, which left the province on the hook for $1.3 billion. As such, the province has filed a notice of intent to launch a claim under legacy rules tied to NAFTA. Lawsuits related to the matter have also been filed by a number of U.S. states.
The pipeline project, which would have transported 830,000 barrels of oil from Alberta to Nebraska daily, was cancelled on President Biden’s first day in office. The move was in alignment with Biden’s campaign promise to shift the country to renewable energy and away from fossil fuels. However, estimates show a growing demand for oil through 2040, and the oil will certainly be coming from somewhere.
In fact, refineries have declared that rather than oil from Alberta, they will now turn in part to imports from other, less politically stable countries. Other quantities will be transported by other means, which when compared to pipelines like Keystone XL are less safe and environmentally friendly. So, rather than legal battles and riskier oil, we should be encouraging the construction of new pipelines, along with the integration of more widespread carbon capture, utilization, and storage technologies.