President Trump intends to take action today to advance construction of Dakota Access and Keystone XL pipelines, according to a person familiar with the matter.
TransCanada Corp.'s Keystone pipeline was rejected under President Obama and Energy Transfer Partners LP's $3.8 billion Dakota Access project was stalled when the Obama administration halted work near Lake Oahe in North Dakota amid protests by Native American groups.
The moves, taken on Trump's fourth full day in government, illustrate his plan to fulfill his campaign pledge to give the oil industry more freedom to expand, create jobs and ease bottlenecks related with transportation.
Good news for TransCanada and Energy Transfer
TransCanada climbed as much as 1.1 percent to C$63.25. Energy Transfer Equity LP and Energy Transfer Partners LP climbed 3.3 percent and 1.7 percent, respectively.
The Keystone XL pipeline will bring Canadian oil from Alberta to the Gulf Coast and would result in higher margins for oil companies.
White House press secretary Sean Spicer declared Donald Trump's goal was to balance environmental protection and projects that can promote the economy and create jobs.
TransCanada wants to show the project's benefits the U.S. economy
It is possible that TransCanada may need to submit another formal application to keep advancing with the project, but the company's plans for Keystone XL already have been vetted. Years of environmental scrutiny culminated in former President Barack Obama's 2015 decision that the pipeline was not good for US.
TransCanada has not declared if it would reapply for permission to build the pipeline, but the day after Donald Trump's election, the company said it was looking for ways to convince the new government of the project's benefits to the US economy.
If this project becomes successful, it will revitalize the US economy and create jobs. Now that Trump is in power, this project could become a reality.