> When I asked oil and gas industry insiders why Pembina would push so hard for a project with such dismal economic prospects, they offered a startling explanation. Pembina doesn’t have to turn profit in real life, it only has to convince investors that there’s a chance, even a small one, that it will eventually succeed. Any proposal that attracts venture capital makes money, they said, even if the pipeline is never built, even if the market for natural gas remains depressed. So while most 2020 headlines about Jordan Cove forecast its demise, they miss the fact that people like Gow could still lose their land and foreign business interests could still get very rich, even if they never break ground. Riches can be gained and property can be taken based on the idea alone.
I thought this article was interesting as it is a non-tech example of how too much capital sitting around is causing bad, or even impossible, ideas to get investment.