Monday, May 28, 2018

Monday Evening, The Market, Energy, And Political Page, Part 2, T+18 -- May 28, 2018

A reader sent me these two links. I was not going to post them until tomorrow, but they need to be posted tonight -- the two stories:
From the second linked article:
Buying the pipeline outright has become increasingly likely and is now the most probable option, the person said, speaking on condition of anonymity because the discussions are private. The deal, a value for which hasn’t been publicly reported, will be announced as soon as Tuesday when Prime Minister Justin Trudeau’s cabinet is due to meet.
Canada first offered to indemnify the expansion project but is now likely to instead buy it in full. The Canadian government plans to sell the project -- the existing line and its expansion -- as soon as is reasonable once it’s guaranteed that it will be built, the person said. It’s unclear if other Kinder Morgan assets will be included in any sale.
My reply to the reader follows. The reply is not ready for prime time, but I think it adequately reflects my initial thoughts:
This -- Canada paying for, buying, whatever one wants to call it -- is really, really bizarre. I don't know what you think about it, but it seems pretty pathetic when one province can shut down a critical project like this that affects the entire country.

This is not similar to the Keystone XL. The US has such a huge economy and is so diversified, that one pipeline did not have a huge effect on US GDP. However, Canada has little except its natural resources -- such as oil. This action by Trudeau -- an environmentalist -- shows just how important he thinks his project is.
Can one imagine the following?
  • Pennsylvania stopping Abraham from waging war "to save the Union"
  • Texas stopping FDR from entering WWII
  • Massachusetts stopping the "Manhattan Project"  
  • Illinois stopping JFK's plan to "land a man on the moon, and safely back again"
  • Hillary banning fracking
Actually I can imagine the last one. LOL. 

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