By Railfan & Railroad Staff

CALGARY — The Biden administration’s decision to cancel the permits for the controversial Keystone XL pipeline could mean more traffic for Canada’s two Class I railroads, S&P Global reports.

On his first day in office, President Joe Biden canceled the permit for the pipeline that would have connected Alberta with refineries on the Gulf Coast. The future of the pipeline project had been in flux for a number of years and partly because of that, Canadian Pacific has been building a diluent recovery unit facility in Hardisty, Alberta, that treats the heavy Canadian crude so that it can be shipped by rail. During last month’s earnings call, CEO Keith Creel told shareholders the decision to cancel the pipeline was good news for his company. Canadian National executives said that while overall oil traffic was down in late 2020, demand for heavy crude was actually increasing. 

Meanwhile, pressure is mounting to close the Dakota Access Pipeline, which some argue is operating illegally because its builder did not get the appropriate permits. Activists are calling for a new environmental review and for it to be closed while that happens. If the pipeline, which connects North Dakota with Illinois, were to close it would be a big boon for railroads operating in and out of the state.