In a move to bolster North American energy independence, President Donald Trump has swiftly approved cross-border permits to revive the Keystone XL (KXL) pipeline and expand the Dakota Access Pipeline (DAPL). The permits, issued in April, come as oil producers push to transport increasing volumes of Canadian crude to U.S. refineries, leveraging existing infrastructure to minimize environmental and political backlash.
Reviving Keystone XL
The defunct Keystone XL project, previously canceled during both the Obama and Biden administrations, is being resurrected in a modified form. Canada’s South Bow and True Companies’ Bridger Pipeline are spearheading the Prairie Connector and Bridger Pipeline Expansion projects. These initiatives will utilize partially built KXL assets on the Canadian side, connecting with a new Bridger pipeline at the Montana border and running 647 miles to the Guernsey, Wyoming interconnection hub. The project aims to move at least 450,000 barrels of Canadian heavy oil sands to the U.S. daily.
Expanding Dakota Access
Meanwhile, the Dakota Access Pipeline, stretching from North Dakota to Illinois, is set to indirectly expand its capacity to transport Canadian crude. Calgary-based Enbridge plans to reverse its Bakken Pipeline (Line 26), historically running north into Canada, to flow Canadian barrels south to DAPL. Enbridge will construct approximately 80 miles of additional pipeline to connect the two networks. This expansion is part of Enbridge’s broader effort to maximize Canadian oil exports to the U.S., particularly in light of the heightened importance of energy security following the conflict in Iran.
"You face less resistance when there’s already pipe in the ground," noted Keland Rumsey, crude team lead analyst for East Daley Analytics.
Both projects aim to leverage existing infrastructure to avoid the prolonged environmental and political battles that plagued their predecessors. However, challenges remain, particularly in determining the route from Guernsey, Wyoming, to the Cushing, Oklahoma oil hub, which ships barrels to Gulf Coast refining complexes and export terminals in Texas and Louisiana. Bridger Pipeline is currently exploring options for this leg of the project, even as analysts suggest alternative routes.
As the U.S. seeks to reduce its reliance on foreign oil, these pipeline projects represent significant steps toward achieving greater energy independence, though their ultimate success remains uncertain.