The Canadian market has produced almost no wealth for the last 10 years, but the oil portion has been even worse. In a desperate attempt to appease investors in the Canadian oil market, the government will provide financial support of a public oil company. The reasoning is described by the Finance Minister, Bill Morneau.
Morneau studied at the University of Western Ontario, INSEAD, and the London School of Economics (LSE). Since November 4, 2015, he has been Canada’s Minister of Finance. Bill ran against Linda McQuaig and won in the 2015 federal election. During that campaign, Linda was denounced by Prime Minister Stephen Harper after she stated on a CBC-TV program that much of the oil from the Athabasca oil sands would have to be left in the ground if Canada was to meet its climate change targets.
Perhaps with foresight of the political impacts of straying from the oil message, politicians do what is rational to keep their power.
Here is the reasoning behind support of Kinder Morgan
Keep in mind, the performance of the oil industry during a period of divestment.
The Canadian market has produced almost no wealth for the last 10 years, but the oil portion has been even worse. pic.twitter.com/KseNDhtSfm— Dollarette (@dollaretteco) May 21, 2018
Even though oil and gas extraction only account for 14.73% of Canada’s exports in 2017, the commodity is front and center on Canadians minds, while ignoring the more future focused industries and economic sectors. Oil is a convenient tool to gain support from voters and increase the wealth of politicians.
Here is the discussion from 2015. Even the suggestion of removing support from the oil industry will result in immediate excommunication from the Canadian family affair.