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Still, that’s higher than current prices, and could fall below many price forecasts, especially if the world transitions to low-carbon energy sources at a faster pace.

For example, the International Energy Agency suggested in its 2019 global outlook that prices per barrel could fall to US$59 per barrel by 2040 if sustainable development policies take hold.

On the other hand, it predicted that if current policies remain in place, oil prices could reach US$134 per barrel by 2041.

Aside from prices, there are also questions about how Teck, which has a total market capitalization of $9.3 billion, will finance construction of Frontier, which has an estimated capital cost of more than $20 billion.

I don’t believe they have enough equity to build this project out of their own pocket Dinara Millington, Canadian Energy Research Institute

“I don’t believe they have enough equity to build this project out of their own pocket,” said Dinara Millington, vice president of research at the Calgary-based the Canadian Energy Research Institute.

So far, the company has said only that it would likely seek a partnership to advance the project.

As far as Lindsey’s last concern about pipelines, there has been some progress in Canada. If all proposed pipelines are built, there likely would be enough capacity for Frontier to move some or all of its production, according to Millington.

But that assumes the pipelines are constructed, and analysts including Birn have noted there is still a possibility of physical opposition, given that some First Nations and local communities are against fossil fuel development. Over the weekend, First Nations, upset with the RCMP’s decision to arrest activists at the Coastal Gas Pipeline project in B.C., forced the cancellation of Via Rail service between Montreal and Toronto, while the Vancouver Port Authority is also in a standoff with Indigenous groups.

“A concern I would have is around the project economics,” said Millington, adding that no one really knows where oil prices will be in the future.

• Email: gfriedman@postmedia.com | Twitter: GabeFriedz