Sunday, 19 February 2012
Enbridge Northern Gateway Pipeline Could Hurt Canadian Economy
(Source - Wikipedia) A report put forth by economist and former Insurance Corporation of BC CEO, Robyn Allan, in early 2012, states that this proposed pipeline could actually hurt non-oil based sectors of the Canadian economy. Allan stated in the report that the project's success depends on continual yearly oil price increases, by about $3/barrel. She also stated that an increase in oil prices will lead to "a decrease in family purchasing power, higher prices for industries who use oil as an input into their production process, higher rates of unemployment in non-oil industry related sectors, a decline in real GDP, a decline in government revenues, an increase in inflation, an increase in interest rates and further appreciation of the Canadian dollar."