The Oil Sands Of Alberta

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Alberta Oil Industry EC239 section C Instructor: Sharif Khan GROUP MEMBERS Jiayu Weng 133004040 Liang Zhang 114161410 Jingsong Sun 114161870 Brent Bogdon 130177700 Thurairajah Thilakxshan 130937440 I. INTRODUCTION The Oil Sands of Alberta have been a scene of controversy since the commercial production of oil began there in 1967. The Oil Sands are underground deposits made up of a mixture of sand, water, clay, and bitumen (1). The oil extracted from these reserves in Alberta is an integral source of energy used by Canadians on a daily basis, from transportation to heating. The oil sands are also a major host for jobs not only for the locals in Alberta, but also for all Canadians. Even with such apparent benefits, there are many who…show more content…
Therefore with the growing need for energy in the global markets America decided to loosen trade policy regulations and export crude oil. America has been able to keep with Saudi Arabia’s absurd production of crude oil, causing the price of crude oil to drop. This constant production of crude oil has brought prices to fall below $40 USD, causing many energy firms in Alberta to make staff and budget cuts. The Alberta oil industry future is grim, as many companies have already reduced spending plans and has predicted that they will be operating 57% less than 2014. This tremendous hit to the Oil industry has caused tremors in all other aspects of the economy as the unemployment rate, “immigration” rate, and the real estate market worsens. Alberta’s economy is closely related to the oil industry, thus with the decline of crude oil prices the economy is in an unstable state. III. DATA ANALYSIS Figure 3-1 Alberta’s oil exports has been increased from about $17.1 billion to $76.2 billion and the proportion of oil exports in total goods exports has also been increasing between 2004 and 2014. In other words, oil exports have become more and more important in Alberta’s exports. Figure 3-2 From 2014, the crude oil price has dropped in a sudden since the global economic downturn, oversupply of crude oil and the appearance of new energy. Global economy fatigued, and thus the demand of crude oil was not strong,
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