Oil And Gas Industry : The North Sea And New Zealand Essay

The international energy agency (IEA) report that global upstream expenditure and development in oil and gas industry has a strong growth by averaging 11 percent per year in 2000 – 2012 and

Diverse and multi-faceted, the Canadian business market is one of the strongest functioning mixed market economies in the world. Within the Canadian economy, the oil and gas sector stands as one of the largest and most influential sectors. The oil and gas industry is unique as it affects almost every person and sector of the economy worldwide, whether it is through commodity or material input costs. In Canada, this growing industry could allow for the country to be the one of the “biggest energy producers in the world” leading to a massive paradigm shift globally.

Currently, the United States is the largest importer of crude oil in the world, while it is only the 3rd largest producer. In 2013, while we imported 7.7 million barrels of oil a day, we only produced 7.5 million (Dakota Access). It is critical that we produce more and import less so we can be more self-sufficient in energy production and focus on our country’s economy, to benefit the American people.

Canada became a net oil exporter in the early 1980s and has since grown to become the world’s fifth largest producer of crude oil (US Energy Information Adminstration 2015). In 1981 Canada’s net trade surplus in energy goods relative to its GDP sat at around 0.6 percent and by 2000 it had increased to 3.3 per cent (Stuber 2001). Canada produces about 4.4 per cent of the world’s oil; owns close to 10 percent of the world’s oil reserves and consumes roughly 2.5 per cent of the world’s oil (KPMG-SECOR November 2013). The US is currently Canada’s top importer of crude oil, importing close to 37 per cent of oil in 2014 (US Energy Information Adminstration 2015).

Norway is the third largest exporter of crude oil. Three separate strikes over a five-month period severely influenced production.

In addition to the US peak oil situation, the US Oil Drilling and Gas Extraction Industry faces heavy foreign market competition. In 2011, the US ranked 3rd in oil production, behind Saudi Arabia and Russia (Energy, 2012). Saudi Arabia’s OPEC governor expects Saudi output to rise steadily beyond 2030 with a 1.5 million barrel per day spare production capacity then (Energy, 2012). Russia holds the world’s largest

This research topic focuses on the rise of Canadian oil production and how Canada’s economy has reacted to this rise. Canada is in a very unique position in terms of oil production. Within Alberta, Canada has had an abundance of oil that it could produce. However, oil prices used to be a lot lower than what they have risen to in recent time. With these low oil prices, no one could justify producing the oil within the Alberta. This is due to the issue that the oil located in Alberta is mostly from oil sands (Facts about Alberta’s, n.d.). These result in oil that is mixed with oil, clay, water, etc. Therefore, due to the nature of the oil sands, to extract the oil it is much more expensive than oil that is not from oil sands

Since 2004 the UK has been a net importer of natural gas, as the North Sea reserves have been exploited and nearly exhausted. Today, ten years later, the UK has become even more dependent on foreign gas with over 50% of demand for gas satisfied by foreign supply (Gloystein, 2013). This increasing dependence on foreign countries is a worrying trend, due to the adverse effects it can have, which include being subjected to price shocks, supply shortages and manipulation both economically and politically. Energy insecurity has arisen through a lack of investment in other

United States oil production surged between 2008 and 2015 and few states have benefited as

Natural gas is a pillar in Canada’s energy resources landscape. Industry reports (IBISWorld) indicate that the oil and gas industries (e.g., gas extraction, gas field services, natural gas distribution) in Canada are expected to generate revenues of over $56.4bn in 2015. The Canadian Energy Research Institute projects Western Canada’s natural gas sector to add $2.3tn to Canada’s GDP between 2015 and 2035. While, sales are projected to generate $1.4tn in sales and $400bn in taxes, as well as attract over $450bn in capital investments over the next 20 years. Currently, it is estimated that shale gas contributes to 15% of Canada’s natural gas production and is growing. The National Energy Board estimates this to be 28% by 2035.

United States domestic production has nearly doubled over the last several years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraqi oil production and exports are rising year after year. Even the Russians, with all their economic problems, manage to keep pumping. There are signs, however, that production is falling in the United States and some other oil-producing countries because of the drop in exploration investments. But the drop in production is not happening fast enough, especially with output from deep waters off the Gulf of Mexico and Canada continuing to build as new projects comes online. On the demand side, the economies of Europe and developing countries are weak and vehicles are becoming more energy-efficient. So demand for fuel is lagging a bit.

A prime issue with the oil industry is systematic issues within countries that have an abundance of oil however a low quality of government and economic

Through the use of advanced technologies, geologists have the capability to predict potential locations for oil. This is done by the examination of the structure of rock layers, which is then followed by a test-drill in the Earth’s surface. Not every location that gets examined contain commercially viable oil reserves as some locations will have no oil or gas, some will have tiny amounts, and others will have the oil present but it will still be trapped within the porous rock layers such as oil shale. The earth’s crust plates are constantly on the move, and the oil reserves migrate with them. The reason a lot of the oil drilling occurs at sea is particulurarly because the majority of the crust of the planet, under which the oil is located,

The world’s largest producer of crude oil is Russia producing more than 5.3 million barrels per day (Barden 2017). The history of Russia’s oil industry started in the 16th

World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.