Ottawa imposed new regulatory hurdles that led to TransCanada scuttling its Energy East project.
Canadian oil producers will lose an estimated $15.8 billion this year in foregone revenues compared to other producers.
For much of the summer, the federal government will backstop construction costs by Kinder Morgan, a private firm.
Pipeline expansion project may generate $50 billion in government revenue over 20 years.
Kinder Morgan stopped all “non-essential spending” on the $7.4 billion project due to regulatory, legal and political barriers.
Statistics Canada’s latest survey on investment intentions for 2018 found that private-sector investment is slated to fall again this year.
Cenovus recently announced it will cut production from some of its oilsand projects.
The recent move by Kinder Morgan on the Trans Mountain pipeline was a massive blow to Canada’s investment attractiveness.
Private-sector investment in factories and other structures down more than 23 per cent.
Business investment (excluding residential structures) is down nearly 20 per cent since the third quarter of 2014.