The United States presidency will be changing hand tomorrow and with that, it may hinder southwestern Saskatchewan's oil and gas industry.

Early reports out of the United States have president-elect Joe Biden rescinding the Keystone XL pipeline permit.

Cypress Hills MLA Doug Steele said he's very disappointed to hear that the pipeline may be scrapped given the economic impact it would have on his riding, the rest of the province, and the country.

"The spinoffs from the construction side, to the long-term movement of our oil whether it's Saskatchewan oil or northern Alberta oil, it helps," he said Tuesday morning. "It gets us from being landlocked, it's just another opportunity to get our product to refineries."

According to Steele, 261 kilometres of the pipeline would cross through Saskatchewan, most of that in his riding, on top of three pumping stations too.

"We have a first nations community like the Nekaneet community have quite a substantial amount of dollars invested in this pipeline and structure," he said.

The next step for Steele and the Saskatchewan government is to try and lobby with the Biden administration to change their mind on cancelling the project.

"Minister Eyre and the Premier and ourselves as the government of Saskatchewan, well reach out," he said. "We have people that will go down and talk and hopefully reason with them and say look let's try and move forward on this. Let's put our business hats on and forget about the motions and stuff like that and let's get going forward."

Due to the lack of pipelines in western Canada, Steele said last year $900 million in revenue was lost and the provincial government lost about $500 million in royalties.

Some of the pipeline was being constructed in the EVRAZ Regina Steelmaking & Rolling Mill.