Analyst Note| Joe Gemino, CPA |
Energy infrastructure projects have been under fire lately, highlighted by project cancelations, legal challenges, permit denials, and political opposition. TC Energy's Keystone XL and Enbridge's Line 3 replacement are among the most controversial. The November U.S. presidential election could have a major impact on the future of energy infrastructure, especially on the Keystone XL. If Democratic candidate Joe Biden is elected, it's almost assured that he will revoke the project's presidential permit, shelving the project indefinitely. The Keystone XL also faces opposition from federal lawsuits that question the validity of its permits and challenges to obtaining water crossing permits after Nationwide Permit 12 was ruled invalid for new pipeline projects. On the other hand, President Donald Trump has shown support for the pipeline. It looks like a tossup whether the Keystone XL will be built or not.