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By Christopher M. Matthews and Erin Ailworth 

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.

Shares of TransCanada Corp., the company behind Keystone XL, rose 3.5% to $48.84 Tuesday. Energy Transfer Partners LP, the main company behind the other pipeline, called Dakota Access, was up 3.5%.

A spokesman for TransCanada said the company is preparing to reapply for a needed permit for Keystone XL. Energy Transfer didn't respond to requests for comment.

Whiting Petroleum Corp., a major oil producer in North Dakota, said completion of the Dakota Access Pipeline, which was designed to transport oil from that state, would boost activity in the Bakken region. That area experienced a decline in drilling as oil prices declined in the past two years.

"It's going to make the Bakken a more competitive basin," said Eric Hagen, Whiting's vice president of investor relations.

Because U.S. refiners have found other ways to access Canadian crude, Keystone supplies may not be needed until 2020, said John Auers, executive vice president of Turner, Mason & Co.

"It's always good to have another option, but it's not needed and probably not even highly desired for a few years," he said.

One question lingering over the deal is taxes, said Afolabi Ogunnaike, senior research analyst at Wood Mackenzie

"Some border tax proposals could negatively impact the economics of these flows," he said.

Canadian producers are also still supporting other pipeline proposals that would give them access to Canada's West Coast.

Write to Christopher M. Matthews at christopher.matthews@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com

(END) Dow Jones Newswires

January 24, 2017 18:02 ET (23:02 GMT)

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