Wednesday, May 01, 2019

Pipelines Are a Lousy Bet

From National Public Radio, NPR:

A new report by an energy watchdog group says companies are betting over a trillion dollars in risky gas pipeline projects. 
Global Energy Monitor says these projects are hugely expensive - so the payback is over decades. Climate scientists say we need to stop burning fossil fuels completely by 2050. 
That means the pipelines could become stranded assets for the companies. 
Enbridge Energy is engaging in a particularly risky expansion, according to Ted Nace, co-author of the report. He says Enbridge, the world's third largest pipeline company, has a heavy debt load. 
That could leave the company at risk of needing government bailouts if global demand for natural gas stays stagnant, or falls. 
Nace says investors are already turning away from fossil fuel projects over concerns about climate change.

1 comment:

Northern PoV said...

But if we can just make more of our bitumen available .. the price will go up.
Economics 101!