USA’s controversial Keystone XL pipeline could affect Gulf oil exports

On Tuesday, US President Donald Trump signed orders smoothing the path for the controversial Keystone XL and Dakota Access oil pipelines, in a move to expand energy infrastructure and roll back key Obama administration environmental actions.

Oil producers in Canada and North Dakota are expected to benefit from a quicker route for crude oil to US Gulf Coast refiners. Once completed, it could spell bad news for the Middle East’s oil producers as the new pipeline is expected to reduce USA’s dependence on it.

During his presidential campaign, Donald Trump had said he would build the pipeline in order to decrease US oil imports and reduce dependence on Gulf oil. 

On the campaign trail, Trump had said that USA would become ‘totally independent’ from OPEC, while at the same time working with allies in the Middle East to develop a ‘positive energy relationship as part of our anti-terrorism strategy.’

Seven of the top 10 oil exporters to the United States are members of OPEC, accounting for more than 45% of the total. Washington, under Barack Obama, had rejected the pipeline based on environmental grounds.

Trump had campaigned on promises to increase domestic energy production. Before taking office, he said the Dakota pipeline should be completed and that he would revive the $6.1bn Keystone XL project, which was rejected in 2015 by then-President Barack Obama.

US crude imports have fallen dramatically in recent years as domestic production has boomed, but the world's largest oil consumer still relies heavily on imports.