Canadian Energy Seen Needing Action, Not `Bro Hugs,' Selfies
(Bloomberg) -- Despite reassurances from Canadian Prime Minister Justin Trudeau, Kinder Morgan Canada Ltd.’s decision to suspend most work on its Trans Mountain Expansion Project signals a “total loss of confidence” in Canada’s investment climate, according to Ninepoint Partners senior portfolio manager Eric Nuttall.
Kinder’s decision comes as pipeline, regulatory and political frustrations have reached new heights in Canada. A dearth of pipeline capacity has depressed Canadian oil and natural gas prices and a new regulatory regime is seen delaying projects. The iShares S&P/TSX Capped Energy Index ETF, which tracks Canadian energy companies, has seen about $77 million in outflows this year.
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