Trump Signs Order Reviving Part Of Keystone XL Pipeline Route

US President Donald Trump has signed an executive order authorizing the construction of a new oil pipeline from Canada to Wyoming, a move that could partially revive the abandoned Keystone XL pipeline project. The order removes a major regulatory hurdle for the proposed energy project, which is expected to transport more than 500,000 barrels of crude oil per day from the Canadian border into the United States.

The permit was granted to Bridger Pipeline LLC, a private oil transportation company based in Casper, Wyoming. The company submitted its proposal earlier this year to the Montana Department of Environmental Quality and argued that the project would strengthen America’s energy infrastructure and support domestic fuel supplies.

According to the executive order signed by Trump, Bridger Pipeline now has permission to construct, connect, operate, and maintain facilities crossing the US-Canada border. The project would use parts of the old Keystone XL route, which had been left unfinished after the pipeline was officially cancelled in 2021.

The Keystone XL pipeline was originally proposed in 2008 and became one of the most controversial energy projects in North America. Supporters argued it would create jobs and improve North American energy security, while environmental activists warned about climate risks, oil spills, and increased greenhouse gas emissions. The project faced years of protests, legal battles, and political debate in both Canada and the United States.

Construction on Keystone XL was halted after former US President Joe Biden revoked a key presidential permit shortly after taking office in 2021. Biden argued the pipeline did not align with America’s climate goals. Trump, who strongly supported the oil industry during both of his presidencies, has repeatedly criticized that decision and pushed for expanded fossil fuel infrastructure.

The latest order is linked to Trump’s broader “national energy emergency” strategy announced earlier this year. Under that policy, federal agencies were directed to speed up approvals for projects involving oil, natural gas, and energy transportation systems. The administration says the goal is to reduce fuel costs, increase domestic energy production, and strengthen energy independence.

Despite the new approval, uncertainty still remains about whether a matching Canadian pipeline connection will move forward. Industry experts say oil producers are still evaluating how much crude they want to continue exporting south to the United States, especially as discussions around new export pipelines to Canada’s West Coast gain momentum.

Calgary-based South Bow Corporation, which controls parts of the former Keystone XL infrastructure, has already approached landowners in Saskatchewan about resurveying land along the old pipeline route. The company also announced earlier this year that it was seeking long-term commitments for a proposed 450,000-barrel-per-day pipeline project called Prairie Connector, which would transport oil from Hardisty, Alberta, to several US delivery points.

However, South Bow officials said the Prairie Connector project remains in the early planning stages. Company spokesperson Solomiya Martoiu explained that the company is still evaluating commercial interest and has not yet made a final investment decision.

Energy analysts say many companies remain cautious because of the political uncertainty surrounding cross-border pipeline projects. Peter Tertzakian, deputy director of the ARC Energy Research Institute, said producers may hesitate to commit billions of dollars to projects that could later face cancellation under future US administrations. He noted that companies have already experienced years of uncertainty with Keystone XL.

Industry experts also pointed to changing global energy strategies as another major factor. Canada has recently focused more heavily on diversifying oil exports away from the United States. Federal and provincial governments have discussed expanding access to Asian markets through pipelines linked to Canada’s Pacific Coast, where oil producers can often receive higher prices for crude shipments.

Analysts warn that oil companies may eventually face difficult choices about where to commit future production volumes. If companies dedicate large amounts of oil to a pipeline heading south into the United States, they may have less flexibility to support future export projects toward Canada’s West Coast.

The financial challenge is also significant. Experts estimate that filling and operating a major pipeline often costs two to three times more than building it. With modern pipeline projects costing billions of dollars, companies are expected to carefully study long-term demand, political risks, and international energy prices before making final decisions.

Meanwhile, environmental organizations are already criticizing Trump’s latest order. Climate activists argue that reviving any part of Keystone XL would increase fossil fuel dependence at a time when many countries are trying to reduce carbon emissions and invest in cleaner energy technologies. Some groups have also warned that legal challenges against the project are likely in the future.

The US Bureau of Land Management is expected to release a final environmental impact statement on the Bridger pipeline project in spring 2027. A final government decision on broader approvals and construction timelines is expected after that review process is completed.