TORONTO (AP) — The premier of Canada’s oil-rich province of Alberta wants President-elect Joe Biden to give the Canadian government a chance to make the case for the Keystone XL oil sands pipeline to be built.
Alberta Premier Jason Kenney said Monday he will seek legal damages if reports are true that Biden plans to scrap the pipeline on his first day as U.S. president. Biden’s plan is outlined in transition documents seen by Canadian media outlets.
“We hope President-elect Biden will show respect for Canada and will sit down and at the very least talk to us,” Kenney said.
The 1,700-mile (2,735-kilometer) pipeline would carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast, passing through Montana, South Dakota, Nebraska, Kansas and Oklahoma.
First proposed in 2008, the pipeline has become emblematic of the tensions between economic development and curbing the fossil fuel emissions that are causing climate change. The Obama administration rejected it, but President Donald Trump revived it and has been a strong supporter. Construction already started.
Canadian Prime Minister Justin Trudeau raised Keystone XL as a top priority when he spoke with President-elect Biden in a phone call in November. The project is meant to expand critical oil exports for Canada, which has the third-largest oil reserves in the world.
Trudeau and Biden are close and largely politically aligned, but the pipeline is expected to be early irritant as Biden has said he would cancel it.
“This is about the Canada-U.S. relationship,” said Kenney, whose province has a financial stake in the pipeline.
After reports surfaced that it would be canceled on the first day of Biden’s term, Calgary, Alberta-based TC Energy Corp. announced late Sunday it would spent US$1.7 billion on a solar, wind and battery-powered operating system for the pipeline to ensure it is zero-emission by 2030, and to rely exclusively on union labor.
Federal Natural Resource Minister Seamus O'Regan said in a statement his government continues to make the case for the pipeline to American colleagues.
“Canadian oil is produced under strong environmental and climate policy frameworks, and this project will not only strengthen the vital Canada-U.S energy relationship, but create thousands of good jobs for workers on both sides of the border," he said.
Roland Paris, a former foreign policy adviser to Trudeau, noted it has been Biden’s position to cancel it for a long time.
“Still, he should recognize that peremptorily revoking the permit without first giving Canada a chance to make its case wouldn’t exactly send a signal of renewed friendship that he has promised towards America’s closest allies,” Paris tweeted.
7 Stocks That Will Help You Forget About the Fed
Normally when the Federal Reserve (i.e. the Fed) makes an announcement, the market reacts predictably. That’s due, in large part, to the nature of what the Fed normally announces. Will interest rates go up, down, or remain unchanged? And for their part, the markets have a pretty good idea what the Fed will do before they do it.
But the Fed’s announcement of August 26 was a little different. They talked briefly about interest rates (they’re staying really low for a long time). But they were more concerned about inflation. Well, the Fed is always concerned about inflation, but this time they really mean it. Basic economics says that low-interest rates should spur inflation.
However, the market has been defying conventional wisdom and the Fed is not getting the inflation they want. So the Fed has basically said that they’re letting inflation go rogue. If it goes above their target 2% rate, so be it. The Fed is done trying to hit a target.
At first, the markets cheered the news. Not only was the Fed not taking away the punch bowl, but they were also going to keep the low rate liquidity going for a long time!
But after a little while to digest things, investors are realizing they have to be grown-ups about this. And now investors are considering how to rebalance their portfolios for the remainder of 2020.
I don’t know about them, but if I were you I would target companies that have a high free cash flow (FCF). Whether it’s your personal finances or in evaluating a stock, cash flow is your friend.
When a corporation has high FCF, they have more strong growth in good markets and more flexibility during when the economy is weaker.
As institutional investors come back into the market, it’s time for you to reposition your portfolio for whatever comes next.
View the "7 Stocks That Will Help You Forget About the Fed".