On his first day in office, President Biden canceled permits for the Keystone XL pipeline. Environmentalists and anti-fossil fuel activists should not have applauded his move.
After all, Canada will not stop extracting oil from the tar sands of northern Alberta. Instead, it will simply export oil over existing pipelines or to the Pacific Ocean, where the damage from a potential spill would be harder to address. Biden’s cancellation cost jobs and pushes Canada toward greater economic cooperation with China. It also shakes confidence in U.S. business. Who would invest in the country if any future administration can simply renege on deals with the stroke of a pen? Especially, that is, when the investments involved here reach into the billions of dollars?