It felt like a gut punch.
That’s how South Dakota small business owner Laurie Cox described how she felt when news broke that Canadian developer TC Energy officially pulled the plug on the Keystone XL pipeline. The monumental decision to walk away from the $8 billion project was confirmed Wednesday and came at a devastating cost to communities that pinned their hopes and investments on the success of the massive cross-border venture.
The decision to call it quits left people like Cox, who owns a two-story hotel that housed pipeline workers in Midland, South Dakota, feeling abandoned and angry.
“I am disappointed that TC Energy is giving up the fight,” she told the Washington Examiner. “I know they and their subcontractors have lost a lot on this, but I feel like they have given up too soon.”
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If the plans had stayed in place, the Keystone XL would have connected two points of an existing pipeline, also called Keystone, that carries Canadian crude oil into the United States. Developers pitched the Keystone XL to towns along its route as a major investment opportunity and a chance at a better life. Places that lacked hospitals, good schools, or access to basic things like grocery stores were told their worries would be over soon.
“Their promises lead to our communities’ investments,” Cox said. “This leaves our communities holding a lot of debt.”
She added, “[TC Energy’s] billions lost to our millions or tens of thousands should be looked at as relative figures. Our total loss will be seen in months and years to come.”
The pipeline news also hit Peter Bardeson, business manager for the Laborers, Local 620 union in Sioux Falls, South Dakota, hard.
Similar to Cox, Bardeson believes the motives behind canceling the pipeline were purely political, and he blames the current administration.
“I am so disappointed, pissed off, angry for what Joe [Biden] has done to the position we were in when it comes to energy production in the U.S,” Bardeson said. “We were the largest producers of oil, gas, natural gas, and propane. He is choking the U.S. with the overturning of almost all of President Trump’s policies.”
Gaylord Lincoln, a semi-retired mechanic who splits his time between South Dakota and Florida, said he’s sick of “decent, hard-working people paying the price” for decisions made in Washington, D.C.
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“Damn it,” he said upon hearing the news. “There goes everything. There goes our shot at trying to build something good for our kids. There will be nothing left for us. Joe did this.”
The fight over the pipeline dragged on for more than a decade, and its fate has flip-flopped from one administration to the next.
The pipeline was first proposed in 2008. Since then, it’s become a cautionary tale of what happens when economic development, climate change, and politics face off.
Former President Barack Obama rejected a key U.S. permit for the project in 2015, citing environmental concerns.
“America’s now a global leader when it comes to taking serious action to fight climate change,” he said at the time. “And frankly, approving this project would have undercut that global leadership. And that’s the biggest risk we face — not acting.”
Former President Donald Trump reversed Obama’s decision his third day in office and remained a steadfast supporter of the multi-billion dollar pipeline throughout his presidency. His reversal breathed new life into the project and gave TC Energy, skilled laborers, and communities that would benefit from jobs and investments new hope.
Last year, construction began after a $1.1 billion cash infusion by the government of Alberta jump-started the project.
Less than 12 months later, the Keystone XL was once again stopped in its tracks when President Joe Biden effectively nailed the coffin shut on his first full day in office.
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The decision to scrap the project marks a historic victory for environmentalists and Native Americans who have fiercely fought against it.
In its announcement Wednesday, TC Energy gave little explanation of the decision but said it had completed a comprehensive review of its options before making the final decision to scrap the Keystone XL altogether. The Canadian company said it would now focus on building its business in shipping and storing natural gas, liquid fuels, and power to meet the demand for cleaner fuels in North America.
“We value the strong relationships we’ve built through the development of this project and the experience we’ve gained,” TC Energy Chief Executive Francois Poirier said.
Last month, the company took a $2.2 billion writedown, which pushed it to a loss in its most recent quarterly earnings.
The pipeline was also funded in part by the Canadian government that said in a press release it reached an exit agreement with TC Energy. The final cost to the Canadian government is expected to be $1 billion.
