It's no wonder the private sector wants nothing to do with "Trudeau's Folly," a.k.a. the Trans-Mountain pipeline.
When Kinder-Morgan dangled the hook there was only one sucker willing to bite - our federal government. And Trudeau and Morneau took that hook real deep; hook, line and sinker deep.
Those Texas boys, En-Ron alumni, knew how to play the rubes.
There was a reason Kinder-Morgan was going to walk away from Trans-Mountain. They knew how much it would cost to expand that pipeline and they knew it just wasn't viable. Then along came these Ottawa marks with their chequebook, allowing the Texans to score a handsome profit.
The feds have tried to flog the damned thing but the private sector wants nothing to do with Trudeau's Folly. They can see the writing on the wall for high-carbon, low-value fossil fuels. They know the markets are becoming very leery of resources that could overnight turn into "stranded assets." There's a glut of good oil. Why sink tens of billions of dollars that you may never recover into garbage oil?
Colin Powell is credited with formulating the Powell Doctrine that says don't get into something without first knowing how you'll get back out.
Now it's coming out that the budget forecasts for building Trudeau's Folly were about as reliable as Trudeau's judgment in buying the pipeline.
The cost to build the Trans Mountain pipeline expansion has jumped by 70 per cent to $12.6 billion from a three-year-old estimate of $7.4 billion.
President and CEO Ian Anderson says the company owned by the federal government has spent $2.5 billion to date, including the impact of delays and additional regulatory processes, leaving an additional $8.4 billion needed to complete the project, plus $1.7 billion of financial carrying costs.
He says the project is now expected to be in service by December 2022.
The estimate of $7.4 billion was made in 2017 by the previous owner, Houston-based Kinder Morgan, Inc., which sold the expansion project and the existing pipeline to the federal government in 2018 for $4.5 billion.This being government we probably haven't seen the last cost increase the Canadian public will have to bear from Trudeau's Folly.