Analysts believe the election of Donald Trump as president has paved a clearer path for the completion of certain pipeline projects, including Energy Transfer’s Dakota Access Pipeline and TransCanada’s previously rejected Keystone XL pipeline.
Builders of the Dakota Access Pipeline need an easement from the U.S. Army Corps of Engineers to build under part of the Missouri River but have been held up by the Obama administration during this last section of construction. Energy Transfer said in a statement earlier this week that it plans to continue construction in a timely manner and will not voluntarily halt construction as previously requested by the federal government.
TransCanada believes there may be new hope for the construction of its Keystone XL pipeline under Trump’s administration, especially if the company pushes benefits from the project such as an increase in jobs and tax revenue.
However, if the Keystone XL project does come back to life, the current price of oil will keep the project from moving forward any time soon as analyst Brandon Blossman said the project would not be economically sound at $45 a barrel.