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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Politics

Politics

Canada buys oil pipeline

Canada creates controversy with their pipeline purchase

Canadian Prime Minister Justin Trudeau announced the country will buy a 715-foot oil pipeline for 4.5 billion Canadian dollars ($3.5 billion).

This project will increase oil capacity to 890,000 barrels of oil per day. Trudeau tweeted this about the expansion deal:

“Today, we’ve taken action to create & protect jobs in Alberta and BC, and restart construction on the TMX pipeline expansion, a vital project in the national interest.”

The expansion of the pipeline will help Canada export oil to Asia, as it stretches from Edmond, Alberta to Vancouver, on the coast of Canada. And although this deal may help the Canadian economy, it faces heavy opposition from environmentalists.

In fact, British Columbia Premier John Horgan believes it will hurt the economy. According to Horgan, thousands of jobs in British Columbia rely on environmental preservation, including tourism, film, and fisheries. With increased oil spills and other environmental risks, British Columbia will lose a large portion of its economic activity.

Additionally, this deal will eat up more money than the original acquisition cost. According to the Canadian Broadcasting Corporation, the Canadian government will need to pump billions of dollars into this project to finish the entire expansion.

Trudeau intends to sell the pipeline once it’s finished, but the project will likely take years to complete before this option is available.

The deal still faces many hurdles. The shareholders at Kinder Morgan still have to approve the purchase, and Trudeau may face legal actions from British Columbia, Alberta, and even environmental activists. At the end of the day, this project is far from being over.

Featured image via Pixabay/Robzor


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