The decision now belongs to Trudeau — and it could be a political minefield. Teck chief executive Don Lindsay said last month that the mine’s construction is dependent on “three Ps”: pipelines, a suitable partner and oil prices high enough to warrant the investment. ADTeck based its proposal on oil prices of $95 a barrel — far higher than where global benchmark prices have been since 2014. It took a $688 million write-down in the quarter on its Fort Hills mine, which already is in production, because of “lower market expectations” for crude oil prices. “So it would not just be the government.”The slump in oil prices means the promised economic benefits are more modest than they were when Teck made its proposal, Leach said.
Source: Washington Post February 23, 2020 11:01 UTC