President-elect Donald Trump has announced intentions to reverse President Joe Biden's decision to cancel the Keystone XL pipeline, a project that has been a fulcrum of controversy over energy policy and environmental responsibility.

However, industry experts have expressed skepticism over the feasibility of Trump's anticipated order restarting construction of the pipeline, citing numerous obstacles, including revoked permits and disassembled infrastructure, as Just the News reports.

The Keystone XL pipeline, initially proposed in 2008 by TC Energy, aimed to transport 830,000 barrels of crude oil daily from Canada to Nebraska, but its future remains uncertain due to myriad regulatory and financial challenges.

History And Purpose of Keystone Pipeline

The Keystone XL pipeline was to be a significant addition to a broader pipeline system designed to span 1,200 miles and cross an international boundary, requiring presidential approval.

TC Energy's vision was to connect Hardisty, Alberta, to Steele City, Nebraska, facilitating efficient transportation of crude oil to the U.S. Gulf Coast.

Despite the State Department's estimates of the project's economic benefits -- projecting 42,000 direct and indirect jobs and a potential $20 billion contribution to the U.S. GDP -- President Barack Obama rejected the pipeline in 2012. This decision was heavily influenced by environmental opposition and widespread protests.

Following Trump's election in 2016, TC Energy re-submitted its permit application, and Trump granted approval for the project in 2017 via an executive order. The pipeline proceeded to construction, and by the end of 2020, it was more than halfway completed.

Impact of Biden's Cancellation on Project

On Jan. 20, 2021, President Biden swiftly canceled the project on his first day in office, fulfilling a campaign promise to address climate concerns and reduce fossil fuel reliance.

This move led to TC Energy's dismantling of already installed pipeline segments, with these materials repurposed for other projects.

In response to Biden's decision, TC Energy voided its right-of-way agreements and permits, further complicating any potential attempt at revival. The corporation ultimately divested the project's assets to South Bow Energy in June 2023.

Analysts argue that Biden's cancellation has created a challenging precedent for large-scale energy projects seeking financing.

David Blackmon, an energy industry consultant, remarked on the difficulty companies now face in securing funding for similar infrastructure undertakings.

Challenges Facing Potential Keystone Pipeline Revival

Efforts to restart the Keystone XL pipeline would require navigating a labyrinth of renewed regulatory and legal procedures. South Bow Energy, the current asset owner, would need to obtain fresh permits and reacquire miles of rights-of-way, making the process both lengthy and uncertain.

Comparatively, the Mountain Valley Pipeline, another contentious infrastructure project covering 300 miles, illustrates the formidable opposition and legal hurdles such endeavors often encounter. In light of these challenges, many doubt the practicality of reviving the Keystone XL.

The project's cessation has also highlighted the increased reliance on rail and truck transportation for oil, which some experts claim is less efficient and more environmentally harmful. Critics argue that the absence of pipelines may inadvertently undermine environmental protection goals by elevating the risk of accidents and emissions.

Trump's Planned Policy Revisions and Future Outlook

While Trump's anticipated reversal of Biden's decision may have symbolic significance, experts emphasize that the substantive resumption of the project faces formidable barriers. One potential focus of the Trump administration could be the streamlining of permitting processes for such projects.

Blackmon alluded to this potential shift, suggesting that easing regulatory burdens could become a priority under Trump's leadership, although the effectiveness of such efforts remains to be seen. The overarching complexity of the Keystone XL revival sets the stage for ongoing debate over the balance between energy development and environmental stewardship.

In the broader context of North American energy production, both the U.S. and Canada have achieved record-high oil outputs under Biden's presidency, even in the absence of the additional pipeline capacity that Keystone XL would have provided.