Some oil refineries that had pinned their hopes on the Keystone XL pipeline for crude barrels have moved on.
But energy firms still cheered news on Tuesday that President Donald Trump took actions to revive two stalled pipeline projects.
They said Keystone, which was rejected under former President Barack Obama, still made economic sense and would provide the U.S. with more reliable supplies from Canada.
Canadian crude has traded at a steep discount to American oil, as much as 29% recently, making it potentially lucrative to refineries.
Large U.S. refiners like Valero Energy Corp. and Marathon Petroleum Corp. had invested in units to process the type of oil flowing out of western Canada.
Those operators could quickly put that equipment to use if the pipeline is built, analysts say.
“The stable and reliable long-term oil supplies from our Canadian neighbors is a compelling reason for approving Keystone XL,” Marathon said. Valero didn’t respond to requests for comment.