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What ROI are we looking at for the new pipeline? (vargar.org)
submitted 4 months ago by to c/canada@lemmy.ca
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Hey, sorry, I tried looking up a case study of this for myself, but couldn't find anything substantial. Do you guys have anything like this?

I'm wondering about the new pipeline purely from an economic sense.

Essentially stuff like:

  • Projected taxpayer funded dollars to build the entire thing (a projected bell curve of expenditure).
  • Projected oil demand, and price for the time that the pipeline remains operational.
  • Finally, a bell curve of ROI for us.

I know I know, the environmental damage this would do is horrible, blah blah blah. I agree. I just want to know if this is at the very least a good financial decision or not.

Again, I'm looking for actual quantitative projections. Not stuff like, "but Asia is moving toward renewables".

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[–] 2 points 4 months ago

That's not even ROI.... because the oil would have been transported using rail or another more expressive transport. So the pipeline only returns the savings from rail transport plus the net profit of the additional oil that couldn't be transported. That would only be a fraction of the net revenue.

Then you have to consider that the government gets its returns only on tax, which is only on gross profit.... So it's another fraction of that number again.

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