Trudeau and Biden hold first official call Friday night

Trudeau and Biden hold first official call Friday night

On his first day in office, Mr Biden signed an executive order revoking the permit for Keystone XL. His executive order, which fulfilled a campaign promise, cited concerns about climate change.

"Canada is the single-largest supplier of energy to the United States, contributing to USA energy security and economic competitiveness, and supporting thousands of jobs on both sides of the border", Trudeau said.

Given the reaction, it's hard to blame Biden for believing that reversing former president Donald Trump's decision on Keystone would be an easy way to placate his base and the progressive wing of his party, without costing him too much political capital or causing permanent damage to his relationship with Canada. "Obviously, it's very disappointing", he said.

In his first call to a foreign leader as U.S. president, Joe Biden spoke with Canadian counterpart Justin Trudeau Friday on a number of topics and made plans to continue the conversation next month, Ottawa and Washington said in separate statements. "There is a lot of conversation to have on KXL", Moe said in an interview on Rosemary Barton Live.

Biden speaks with Justin Trudeau Two days later, Biden made his first call to another world leader, Prime Minister Justin Trudeau of Canada.

Administration officials said Mr Biden would also reiterate his support for the Jones Act, which requires goods shipped within the USA to be transported on American vessels.

Trudeau and Biden discussed Covid-19, the Keystone XL oil pipeline and climate change and are set to meet virtually or in person next month.

One of U.S. Rep. Elise Stefanik's first congressional votes in 2015 was to approve construction of the Keystone XL pipeline. In 2019, the US brought in 3.8 million bpd from Canada, more than half its daily imports of 6.8 million bpd.

PRESS  Alex Panetta
PRESS Alex Panetta

But before backing yet another pipeline project, Alberta and all of Canada ultimately need to decide if more pipeline capacity is really needed. Currently, a pipeline extends from Alberta all the way to the Gulf Coast, with several refineries along the way.

And it explains why numerous members of the company's Keystone XL project team were reassigned to other projects around the time of the November 3 presidential election, and why the company is looking at more investments in renewable energy, such as those it's made in the past in solar and wind power.

Enbridge Inc., meanwhile, is working to replace a pipeline in northern Minnesota by later this year.

Because Canadian producers have such limited and costly options for getting their oil to buyers, it trades at a discount to global benchmarks.

That could include economic sanctions, Moe suggested - a possibility also raised by Kenney.

US refiners have consumed more Canadian crude in recent months.

-Paul Vieira in Ottawa contributed to this article.