@JGoldman10,
JGoldman10 wrote:
Well he basically went behind Obama's back and okayed the construction of the Dakota and Keystone XL Pipelines, despite people's concerns for the environment and all the protests against their construction, so I really shouldn't be too surprised about that.
Obama was far more environmentally-conscious than Trump was.
The economic catch in blocking pipeline construction is that doing so stimulates all the other businesses that deliver oil in other ways.
So when the markets see that pipelines can effectively be blocked, they invest more heavily in the oil-tanker business, for example.
So the problem is demand and the fact that markets make money by catering to it. If a pipeline is being built that threatens to take business away from existing supply-lines and bring down the cost of oil, it stimulates disinvestment, which actually hurts much of the existing oil industry.
So by blocking the pipeline, protesters were rightly trying to protect the land where the pipeline was being built, but in doing so were stimulating alternative delivery methods and their investment markets, i.e. because oil demand wasn't going down.