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Significance

The Keystone XL extension is a major new proposed oil pipeline project, with implications for US-Canada trade (at a time of uncertainty surrounding NAFTA negotiations), Canadian oil producers, and the global oil market. Its prospects suffered a blow in November when Nebraska state regulators rejected the pipeline builder TransCanada’s preferred route, opting instead for a lengthier path through the state.

Impacts

Nebraska’s economy could lose out on millions of dollars in revenue if Keystone XL does not go ahead.

US President Donald Trump could be hurt politically if a project that he so publicly backed falls through.

Canadian Prime Minister Justin Trudeau faces provincial and local opposition to new pipeline projects.

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