Quote:
Originally Posted by Street Pharmacist
I have nothing against building the pipeline and I'm not belittling anything. My point is that the reason you're not seeing a pipeline and LNG being built is that it's not economically viable based on current trends and capital outlay. If you read from the beginning I'm not saying it's unethical or people involved are bad. It's simply that the economics aren't there for that type of risk.
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Agreed, I never thought you were belittling anything. This discussion started for me at least when I was responding to your concerns with economics. To which I stated developing Asia and Africa are two key pillars that are often overlooked when it comes to fossil fuel demand. These countries are decades behind Europe and North America in terms of electrical grid and consumer energy demand. Fossil fuels will be a logical stepping stone for them for the better part of this century. That is where a lot of modeling sees the demand side making up for the reduction in consumption in first world countries. Especially the Asia side for Western Canada where we have a geographical competitive advantage.
Now, what we saw with the Blueberry Nation is setting some pretty expensive precedents. This is hammering the economics. However, if companies were given certainty around being able to complete these midstream projects a lot are still passing internal hurdle rates.