TC Energy, the developer of the Keystone XL cross-border oil pipeline, is letting go of 1,000 workers in both the United States and Canada after U.S. President Joe Biden axed the project earlier this week.
On his first day in office, President Biden rescinded the Presidential permit for the Keystone XL oil pipeline, saying in an executive order that "The Keystone XL pipeline disserves the U.S. national interest."
"Leaving the Keystone XL pipeline permit in place would not be consistent with my Administration's economic and climate imperatives," President Biden said.
TC Energy said on Wednesday that it was "disappointed" with the executive action, warning that the decision would impact thousands of union jobs, new renewable energy investments, and opportunities for Indigenous communities.
A day later, news of the job cuts broke as the company halted all work on the pipeline on both sides of the border.
"A majority of the 1,000 are unioned workers who have been constructing on both sides of the border," Terry Cunha, a spokesman for TC Energy, said in an email to Bloomberg.
The U.S. Administration's decision drew harsh reactions and criticism from Canada's center of oil industry, the province of Alberta, which says that the killing of Keystone XL would lead to thousands of job losses not only in Canada, but also in the United States, and would raise dependence on OPEC imports for the U.S. Gulf Coast refiners.
"This is a gut punch for the Canadian and Alberta economies. Sadly, it is an insult directed at the United States' most important ally and trading partner on day one of a new administration," Alberta Premier Jason Kenney said on Wednesday.
"Thousands of union workers are being fired as we speak, as a result of this decision," Kenney added.
Alberta's premier renewed a call to Canada's federal government to enter into a dialogue with the Biden Administration on the matter.
"If ultimately those efforts are not successful, we will defend our interests in court as necessary," Kenney said.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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