The discussion of the limitations of government and subsequent government failure is wholly absent from debate in Canada where, unfortunately, we still assume that governments act benevolently and without institutional constraints. The Auditor General of Canada’s reports, provide concrete evidence of the existence and extent of federal government failure in Canada.

In just six years, the value of Alberta’s net financial assets—the broadest, most comprehensive measurement of Alberta’s financial “wealth”—has dropped by 65 percent, from $34.5 billion in the 2006/07 fiscal year to $12.1 billion in 2012/13, a six-year, $22.4-billion decline.

In the face of expanding production and pipeline bottlenecks, more oil is moving by rail in both Canada and the United States, but transport of oil by rail (or other non-pipeline transportation modes) carries its own set of risks. While pipelines may leak, trains and trucks can crash, hurting individuals. There is no perfectly risk-free way to transport oil, or anything else for that matter.