Canada the next oil power

Beowulf

Diabloii.Net Member
Canada the next oil power

If I asked who is the United States biggest oil supplier what would you answer? Most people would likely say Saudi Arabia or some other middle eastern country. What if I said since last year it is Canada?

According to an article in this mornings Montreal Gazette, whithin 10 years Canada could be the biggest oil producer in the world.

Yesterday, Carl Weinberg, chief economist at High Frequency Economics, an influential U.S. newsletter for financial institutions and money managers, took the story a few steps further. He told clients it's reasonable to expect that within the next 10 years Canada will be the world's biggest oil exporter.

Indeed, Weinberg said, assuming that oil prices remain around $60 a barrel, Canada will be selling about $200 billion worth of oil on world markets, the loonie will be the strongest currency among those of major industrial powers and oil production could account for as much as 30 per cent of total Canadian economic output.
While a lot of this is build on certain assumptions about the state of oil prices, I think the assumptions are fairly safe as the prices continue to rise.

With the sharp rise in oil prices over the past several years, recoverable oil reserves in Alberta have shot up to 175 billion barrels, second only to Saudi Arabia, says Weinberg. Should the price of oil eventually rise to a range around $80 to $100, Alberta's recoverable reserves would rise to an estimated 300 billion barrels, even more than Saudi Arabia's.
What implications will this have on our relationship with the US and other parts of the world. I am more worried how a strong loonie will hurt other parts of the economie like the high tech industry which Canada is already a leader in.
 

SharnMes

Diabloii.Net Member
I heard a rumour about a large US military build up near the Canadian border. I wonder if its true...
 

jmervyn

Diabloii.Net Member
Beowulf said:
According to an article in this mornings Montreal Gazette, whithin 10 years Canada could be the biggest oil producer in the world.
Joking aside, I thought there were some serious faults in this 'discovery', regarding the profitability and potential. Probably Ill would know - this stuff is his (seemingly quite lucrative) profession, after all.
 

Stevinator

Diabloii.Net Member
KnightFall said:
Well fairly soon Bush will cause another disaster and pin it on Canada so they can invade...

KnightFall
Bush caused 9-11? Gosh that's news to me.


anyway, I really hope canada does become a major oil exporter, they may be weird up there but they're much friendlier than the saudia arabians.
 

rikstaker

Diabloii.Net Member
Hmm..Whats with everyone doubting Illad's financial status? :lol:

75k isnt *such* a big deal,senior off-shore staff in the gulf get simillar if not more pay.

Rik
 

Beowulf

Diabloii.Net Member
jmervyn said:
Joking aside, I thought there were some serious faults in this 'discovery', regarding the profitability and potential. Probably Ill would know - this stuff is his (seemingly quite lucrative) profession, after all.
I guess only time will tell. In the last decade we have increased our world rankink and the fact we are now the biggest exporter to the US for oil shows we are taking a big chunk of the market but with new technologies coming who knows how things will be affected.
 

Beowulf

Diabloii.Net Member
rikstaker said:
Hmm..Whats with everyone doubting Illad's financial status? :lol:

75k isnt *such* a big deal,senior off-shore staff in the gulf get simillar if not more pay.

Rik
Actually my uncle who passed away last month worked as a senior safety and security engineer on oil projects in the middle east, africa and most recently in Brazil and was making over 200k$ per project.
 

maccool

Diabloii.Net Member
As Llad will tell you, Canada has lots and lots of hydrocarbons. Problem is, it's in those stupid bitumenous sands of Alberta. It's a pain to extract and the oil itself is schwag compared to the light, sweet crude we get from the Middle East.
 

rikstaker

Diabloii.Net Member
Beowulf said:
Actually my uncle who passed away last month worked as a senior safety and security engineer on oil projects in the middle east, africa and most recently in Brazil and was making over 200k$ per project.
See!! I told them so.

Hmm.All gold pals seem to have an oil connection.:spy:

Rik
 

Beowulf

Diabloii.Net Member
maccool said:
As Llad will tell you, Canada has lots and lots of hydrocarbons. Problem is, it's in those stupid bitumenous sands of Alberta. It's a pain to extract and the oil itself is schwag compared to the light, sweet crude we get from the Middle East.
True, but the article mentions that with the higher price per barrel, it is getting more and more profitable for the companies to find new and improved ways of extracting the oil from the tarsands.
 
maccool said:
As Llad will tell you, Canada has lots and lots of hydrocarbons. Problem is, it's in those stupid bitumenous sands of Alberta. It's a pain to extract and the oil itself is schwag compared to the light, sweet crude we get from the Middle East.
Indeed, but the higher the price of oil goes, the more attractive those oil sands start looking. Extraction prices are all relative to the profit you'll get from the extraction. At $40 a barrel, they may not be worth it, but at $75? Quite possible.

rikstaker said:
Hmm.All gold pals seem to have an oil connection.
Silver too. My dad's an oil exec. :thumbsup:
 

maccool

Diabloii.Net Member
It was profitable to extract oil from the tar sands when oil was $30/bbl. Lousy Cretaceous sedimentary basins.
 

Beowulf

Diabloii.Net Member
maccool said:
It was profitable to extract oil from the tar sands when oil was $30/bbl. Lousy Cretaceous sedimentary basins.
according to the article it starts becoming worthwhile at just over 20$ a barrel. As for deporting Quebec, natural gaz and oil have now been found in parts of Quebec and further studies are being done to determine how much.
 

Anakha1

Banned
SaroDarksbane said:
Perfect! I say now is the time to annex Canada and subsequently deport Quebec. :D
You can have Quebec. By all means... take it.

I don't find it surprising... since Canada has long been known to have the world's largest untapped oil supply. We could actually be the richest country in the world with that plus our other abundant natural resources but our government hasn't woken up and put them to use.
 

Beowulf

Diabloii.Net Member
SaroDarksbane said:
No, you see we'd annex Canada, and then get rid of Quebec. Sorry, don't pawn off your problems on us. ^^
You could try but others like me would not let it happen. Rather see it burn then give it up!!! :D
 
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