Posted on 26 Jan 2021
Fresh US President Joe Biden is offering an olive branch to the steel and energy industries in the form of a heavier focus on electric vehicles and zero-emission tech in the wake of his cancellation of the long-contested Keystone XL pipeline.
President Biden’s decision to nix the pipeline, which would have carried tar sand oil from Canada to the US Gulf of Mexico, came in the form of a Day One executive order revoking its permit.
That executive order stems from President Barack Obama’s original dismissal of the line in 2015, Kallanish notes.
“That analysis, in addition to concluding that the significance of the proposed pipeline for our energy security and economy is limited, stressed that the United States must prioritise the development of a clean energy economy, which will in turn create good jobs,” President Biden says in his order rationale.
The move has been roundly criticised by those in the oil and energy sectors, citing a potential loss of US jobs on the pipeline itself and in the pipe and tube sector. It was also condemned by Canadian Prime Minister Justin Trudeau.
However, in his first call with the prime minister, President Biden stressed that vehicle electrification will more than make up for the expected loss of fossil fuel opportunities, according to a White House readout.
“The president acknowledged Prime Minister Trudeau’s disappointment regarding the decision to rescind the permit for the Keystone XL pipeline, and reaffirmed his commitment to maintain an active bilateral dialogue and to further deepen cooperation with Canada,” the readout states. “The president and the prime minister discussed their shared vision to promote a sustainable economic recovery and to work together to achieve a net-zero emissions future, including through advancements in the automotive sector.”
Canada’s sheet steel sector, via the current incarnation of Stelco, is heavily focused on automotive due to the geographical proximity of Detroit.
Source:Kallanish
