Moody’s believes the president is likely to approve the pipeline.
Environmentalists oppose Keystone and will stage a Nov. 18 demonstration at the White House, while a number business groups and unions want the State Department to permit the project.
“We believe the White House will reverse course and approve the Keystone XL pipeline, which would ship crude from Canada’s western oil sands to the Gulf Coast,” the ratings agency said in a wide-ranging report Monday on the implications of the elections.
However, the Moody’s Investors Service report adds: “[A]pproval will not be quick. A prolonged permitting process risks missing the very oil price boom that inspired Keystone XL in the first place. Still, even if Keystone XL went into operation in 2015 or 2016, Gulf Coast refining and marketing companies would benefit from wider light/heavy crude price differentials.”