Alberta Premier Jason Kenney says the United States should be seeking his province’s oil instead of getting it from Saudi Arabia and Venezuela.
The United States is the world’s largest oil producer ahead of Saudi Arabia and Russia, but it’s also the biggest oil consumer, and it can’t meet that staggering demand with domestic crude alone.
The United States imported 245 million barrels of oil from Russia last year—about 8 percent of all U.S. oil imports—up from 198 million barrels in 2020. That’s less than it gets from Canada or Mexico but more than it imported last year from Saudi Arabia.
Russia’s invasion of Ukraine has sparked a price hike in gasoline in the United States. On March 6, the price of gas surpassed $4 (C$5.12) per gallon for the first time in nearly 14 years.
Oil prices soared early March 7 before retreating. In midday trading, benchmark U.S. crude was up 2 percent to about $118 (C$151.12) per barrel, and the international price gained 4 percent to around $123 (C$157.52) per barrel. Major U.S. stock indexes were down about 2 percent.
With calls to ban the import of Russian oil and concerns that such a move would exacerbate the prices of gasoline and oil, Biden has been hesitant to make a decision.
Kenney proposed a solution.
“All it would take is [Biden’s] approval for Keystone XL. Easy,” the premier said in his tweet.
The Keystone XL cross-border pipeline project was held up for more than a decade by environmental opposition and regulatory hurdles. In 2021, Biden scrapped the project by revoking a presidential permit that had been approved by President Donald Trump in 2017.
If Keystone XL had been allowed to proceed, it would have carried 830,000 barrels per day of oil from Alberta to the U.S. Midwest.
But the bill was defeated in a 221–202 vote on March 1, almost entirely along partisan lines.
“Now the US is importing +600,000 BPD from Putin & may replace that by lifting sanctions on oil from the Iranian & Venezuelan dictatorships!”
“The regime is determined to retain power, and it needs money to do so,” Filipetti told the senators.
“This is a large reason why we have implemented sanctions—to cut off those sources of financial income and prevent the oil industry from being exploited for patronage.”