Canada Wants New Oil Pipelines to Avoid Trump Tariffs; Nobody Wants to Build Them
The Canadian government is urging the construction of new oil pipelines to avoid U.S. tariffs on its exports, but industry experts say regulatory, financial and political hurdles are too significant for private companies to overcome. The current Trans Mountain pipeline system has already experienced cost overruns and environmental opposition, making it challenging for potential investors to consider a new project. Canada's energy sector faces lengthy permitting times and regulatory uncertainty, which is deterring companies from pursuing pipeline proposals.
- The lack of confidence in the Canadian government's ability to streamline the permitting process for oil pipelines could lead to a prolonged period of gridlock, further entrenching the nation's dependence on foreign suppliers.
- What role should governments play in providing economic incentives or guarantees to mitigate the risks associated with investing in high-profile infrastructure projects like pipelines?