The Rise Of Canadian Oil Production

The Canadian economy today is at an all-time high with higher economic growth and rising GDP Canada is seeing great changes in the economy. The GDP increase by 1.1 percent in just the first 3 months of 2017. Canada is quickly recovering from the decline in oil prices that significantly slowed down the growth of the Canadian GDP. Because oil plays such a major role in the Canadian economy this had a huge tole on the overall GDP of this country. But, as the country approaches an increased GDP the energy sector does not seem to be hindering the GDP any longer. With the price of oil and gas going back up this has significantly increased the GDP of Canada due to the large amount of petroleum that Canada produces.

The oil production in Canada has several significant issues that depict the destruction nature of the industry. These issues can be categorized as environmental, political, economic, and social. The environmental issues lead the pack; in that the environmental destruction associated with the industry is extensive. The environmental problems are climatic, land, water and air related (Best & Hoberg, 2015). Under climatic effect, studies indicate that the development of the tar sides has resulted to three times more greenhouse gases (GHGs) than in production of conventional oil. These environmental issues are caused by the composition of the tar sands. Unlike the convention oil, tar sands are a mixture of bitumen and sand. The process of separating the two results triples GHGs emissions when compared to conventional oil production (Koring, 2013).

The Athabasca Delta is a breeding ground for species of birds, which was destroyed to clear the land for oil development. These development practices are a leading factor towards increases in pollution. A scientific panel stated on Tuesday that pollution must be corrected, as there are major debates against the oil sands development. Proponents argue that business through the Oil Sands has made Canada a major player in foreign supplement. Unemployment rates have decreased across Canada and companies generate huge profits. The Alberta Oil Sands provide Canada with a secure source of energy. Throughout the world, Canadian oil reserves are the second largest in the world. Oil mining operations in Canada also help create more trading partnerships with different countries. This is a great way Canada can strengthen relationships and ties with various nation-states. The Oil Sands is a stabilizing force for Canada’s economy, yet it has a tremendous effect on the environment. Corporations are held responsible for their actions, and environmental protection should be their main concern. The procedures that the Oil Sands has taken are not effective, to an extent, where the pace of investment and development in the oil sands

There is a huge debate if the oil sands of canada are affecting canada positively or negatively.The social and community improvements are a result of the oil sands in alberta. The economic benefits are another positive that the oil sands bring. Finally the direct and indirect jobs created in the oil sands are a huge benefit to canada. The oil sands are one of the best things that happened to canada.

Foreign oil dependency is a major topic that is hotly debated in US politics. The United States relies on imported oil for about 40% (in 2012) of petroleum consumed and is the world’s largest consumer of oil. About 53% of the foreign oil imported is from other Western nations such as Canada, Mexico and Brazil. 28% is from the Persian Gulf, 16% from Africa and the remaining from other areas of the world. Canada is currently the leading crude oil supplier to the US. Some believe that importing oil has benefits to our economy, while others believe it is a security threat.

Dr. Lorne Taylor (2012, p. 3), the chair of the Alberta Water Research Institute, states, “Organizations like Greenpeace and the Sierra Club are convincing Canadians and the world that Alberta’s oil sands are a scourge on the environment”. Environmental groups and the media are unfortunately shedding a poor light on the development of the oil sands in northern Alberta. Bob Weinhold (2011, pg. 119), a veteran environmental journalist, states “the Royal Society of Canada (RSC) panel found no evidence that people are currently being harmed by oil sands activity”. Both the environmentalist side and the oil sands producer’s side must be evaluated with an objective mind as each contains truths as well as embellishments. Taylor (2009, pg. 2) argues that a major misconception is “the province, people and industry of Alberta

This 1.4 trillion-dollar industry has been able to benefit Albertans. To elaborate, Alberta’s upstream energy sector, which mainly includes the oil sands, conventional oil as well as gas and mining has provided 133,053 jobs for Alberta residents, according to Statistics Canada. As well, having the third largest oil reserves in the world, Canada is able to use the oil reserves as a trading asset, as it is currently providing 1.4 million barrels of oil to the USA everyday, which is equivalent to $49.7 million at current stock prices. As well, $52 billion dollars in royalty were accounted for during 2013-14. In this way, the oil sands industry provides jobs, billions of dollars in royalties and boosts national income and prosperity through the trading of this resource. This affects my stakeholder since this would give Ed Stlemech a healthy financial resume/profile to an otherwise terrible environmental and societal resume while he was Alberta’s

In “Tarmageddon: Dirty oil is turning Canada into a corrupt petro-state,” Andrew Nikiforuk argues that the Canadian oil industry has harmed Canada’s environmental, political and economical images. First, Canada starts to be regarded as having a defensive attitude towards environmental issues since the Bitumen has been explored. Regardless of the Bitumen’s high cost and emission, Canada still welcomes billions of foreign investment in the Bitumen. Consequently, newly operated industries begin to destroy the forest and generate toxic waste (even into water). While refining oil, lots of energy and freshwater are squandered, outpouring a considerable amount of carbon emission. Hence, Canadian oil industry has been pictured as a “carbon-making

The question that has arisen from this shift is whether or not the Canadian oil and gas industry inclusive of the upstream, and midstream sectors, has a net positive benefit to Canada. This essay will explore and seek to understand the myriad of issues that this industry faces daily.

Countries having the bituminous sand but the wide range of this sand are finding in Canada. The research show that this company is important for economy and showing robust future in the future because in 2004, the processing of engineered unrefined petroleum (SCO) and natural rough bitumen spoke to 41 percent of aggregate Canadian oil generation. At an accepted WTI cost of $32 for every barrel, the oil sands generation is relied upon to expand three fold by 2017, helping considerably more than 50% of Alberta's oil supply. The normal elevated amount of oil action ought to prompt gigantic budgetary development in the district and in addition in the area. The number of inhabitants in the locale (i.e., Wood Buffalo-Cold Lake Economic Region7) has expanded by 8 percent between 2000 and 2004. This contrasts and a development of 7 percent for the region, and 5 percent for the country over the same period. The development and improvement in the oil sands industry at the provincial level affects the common, national

The other adverse effect of the Canadian oil sands is that pipelines and massive processes of refining oil sands in Canada are a source of pollution that pose a great threat to air, water, and land as well as human health. Additionally, the use of its products like natural gas that is used to run medium-sized turbines that produce electricity releases greenhouse gases. These emissions are mostly produced when steam is injected to reduce the viscosity of the crude and during refining. These further increases to the global warming effect that is already out of hand and it also negates the gains made by society by exposing them to the adverse negative

Therefore, natural gas would be a great investment in the economy considering the huge demand for natural gas. According to Canadian Association of Petroleum Producers, “Canadian is the fifth largest natural gas producer and has enough natural gas reserves to meet current natural energy for 300 years (CAPP, ).” There will always be a demand for the natural gas industry because individuals are steering away from gasoline due to the negative effects on the environment, as well as the cost for natural gas. In addition, natural gas is inexpensive compared to gasoline. Therefore consumers consume natural gas, which is why natural gas is would be a good investment to the Canadian economy.

Until 1973, Saudi Arabia barely participated in international trade, however, during the oil crisis, Saudi Arabia’s economy grew rapidly because of their huge oil reserves (second largest in the world), and their ability to produce far more barrels than any other country. Saudi Arabia is the largest producer and exporter of oil in the world, and produce over 11.5 million barrels a day, over 7.5 million barrels a day more than Canada, at far less of a cost. Canada and Saudi Arabia are allies and benefit from each other. Canada and Saudi Arabia’s trade totals more than $3 Billion, and their market is so big because of Canada’s sanctions on Iran, another oil superpower. Saudi Arabia is Canada’s biggest trading partner in the Middle East. Saudi

(Statistics Canada, CANSIM table 111-0009, 2016) In fact, it reflects the development process of their oil industries, which have brought investments, diversity of

Discuss how rising oil prices might affect the macroeconomic performance of an economy. (25 marks)