Quote:
Originally Posted by Regorium
I would argue the bigger issue with pipelines is indigenous consultation.
Without direct funding/backing for consultation, I think it's a non-starter.
In Mexico, the government is responsible for indigenous consultation and own the costs of the deal making, and also any costs of delay/litigation if they reneg. Thats the level of structural shift that'd be necessary to get a major project off the ground.
Tanker ban and C69 add costs, but they're known costs and can be assessed.
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I think the problem is the regulatory burden overall. No company is going to commit to a couple hundred million to get to the stage where this gets killed by regulations/consultations, etc. And frankly, that is where we've been for roughly a decade in this country. What we're asking a business to do is put down some shareholder capital in hopes of getting a profitable outcome, and that is a big ask.
Of course, the other side of the coin is that the political appetite for the government to flat-out own and build one of these pipelines again isn't that high either. It's a massive cost, and a lot of taxpayers aren't incredibly keen on it.