The recently announced Government of Alberta investment in the Keystone XL pipeline was characterized by Premier Jason Kenney as a $7.5-billion "bet," with the promise of near-term jobs and a longer-term increase in royalty and tax revenues. We should expect that other governments around the world will be deploying loan guarantees as part of their pandemic/recession recovery packages. Good government investment requires careful evaluation of different project options, and it is unclear if that was done in this case. At the same time, it is unclear if there is any future-proofing in the planned construction of Keystone XL. The Keystone XL pipeline would bring oil from Hardisty, Alta., to Steele City, Neb.

Source: CBC News April 02, 2020 10:52 UTC