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Potential Capital Cost and Financing Required for Canadian Energy Projects

  • Basil A. Kalymon

Abstract

The rapid shift in energy costs precipitated by the oil crisis of 1973 has led to substantially increased requirements for capital expenditures on energy. The historical structure of the capital allocation process in Canada for our major sources of energy — petroleum and electricity — is reviewed. The financing requirements requirements for electricity generation, conventional oil and gas exploration and development, tar sand and heavy oil plants and northern gas or oil pipelines are assessed and the major problems in raising capital are analyzed. The cost of capital which will be required to attract adequate investment in energy is discussed and the factors currently inhibiting economic efficiency in our response to the energy crisis are presented.

Keywords

Cash Flow Petroleum Industry Capital Expenditure Equity Investment Replacement Cost 
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References

  1. Downs, R. J. November 1977. The availability of capital to fund the development of Canadian energy supplies. Canadian Energy Research Institute, Study No. 2.Google Scholar
  2. Ontario Hydro, October 1976. Electricity costing and pricing study.Google Scholar
  3. Kennedy, T. April 1978. Doubts grow about planned Alaska highway gas pipeline. Globe and Mail, p. 7.Google Scholar
  4. Quirin, G. David, and Kalymon, B. A. 1977. The financial position of the petroleum industry. In Oil in the seventies. The Fraser Institute, pp. 212–240.Google Scholar
  5. Statistics Canada. 1977. Private and public investment in Canada.Google Scholar

Copyright information

© Martinus Nijhoff Publishing, Boston 1980

Authors and Affiliations

  • Basil A. Kalymon

There are no affiliations available

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