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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I don't agree. The reason you don't see pipelines and LNG in Canada is because it's not politically viable.
The economics work from a pure supply and demand perspective. But then you consider the $5B community investment to first nations, the 1-2 year delay due to protests, the 2-5 year delay due to court cases where you'll win until you don't because of an activist judge.
Then it doesn't.
You could claim that those are all economic arguments as well that need to be considered, and I'm making a "if you take the economics out, then the economics work" argument. I'm just claiming from a pure supply and demand perspective, the economics work. You add on the protestors, legal delays, regulatory and political risk, and then it doesn't. This is why you see new pipelines and LNG everywhere else in the world, where those political risk factors are much lower, while the pure global supply and demand part of the equation is the same.
It wasn't that long ago that KXL was stopped because of a political decision, not an economic one.