Crude Oil Problem For Canada ? Oil producers in Canada are facing problem. Since last year, the global demand for oil has been on the rise and to meet this increase in demand, oil producers in Canada, increased their oil production.
Oil producers in Canada find themselves at a dead-end. These oil producers have ample amount of oil to supply. But, they have no means to transport this oil to where it needs to get to, to be bought.
As such, Canadian crude oil is being sold at heavily discounted rates, falling to less than $14 a barrel last week. Pipelines in Canada just do not have the capacity to meet the supply, nor the demand. Worse, because of a huge oil production in America and US President Donald Trump granting waivers to eight nations, allowing them to continue to buy oil from Iran, the demand for oil has now decreased.
National Emergency Declared
The crude oil industry of Canada declared a national emergency after the price of oil in Canada plunged to a record breaking low of a little under $14 a barrel, on Thursday. Canadian Association of Petroleum Producers spokesperson Tim McMillan said, “We are in what we would describe as nothing short of a crisis.”
Rob Peabody, CEO, Husky Energy, said, “I’ve heard some people talk about this as being a bit of a market failure; I think this is anything but a market failure. The market is doing exactly what you’d expect it to do, and it’s doing the right thing. It’s trying to clear the market. The failure is in a whole bunch of other parties, including the industry, who haven’t taken appropriate action to head off what has been probably the slowest train crash or something I’ve ever seen. Coming from about 10 years out you could see it coming, and yet we walked right into it as a nation. [It’s a] pretty sad statement on Canada.”
Who Is To Blame For The Canadian Oil Crisis?
Who or what is to blame for the oil crisis that Canada finds itself in? Is it the introduction of Bill C-69? Is it the roadblocks against the oil and gas industry? Is it the tanker ban off the northern British Columbia coast? Is it the cancellation of Northern Gateway? Is it the federal government’s “killing” of Energy East?
Jason Kenney, Alberta Opposition Leader says, “I believe that all of those developments that have been so injurious to this province were in part the result of a highly successful, deliberate and well organized and hugely well funded campaign of defamation that, for at least the past decade, has sought to defame the production of Canadian hydrocarbon energy — a massive double standard not applied to other major energy producers.”
Or Is It Lack Of A Future Younger Work Force?
It has been seen that young people in Canada are not at all inclined to make a career in oil and gas. A report from PetroLMI states, “The decline in the proportion of young workers, relative to other industries in Canada, suggests that they will — if they have not already — become discouraged from pursuing careers in oil and gas without a concerted effort to attract them .”
How Will Canada Get Out Of This Oily Mess? If Ever It Can!
In the words of Canada’s Prime Minister Justin Trudeau, “It is clear that the way forward for Canada will be in a solution that resembles Canada, that is shared values and shared desires for outcomes and different approaches to achieve those outcomes right across this great country.” Are these words just words? Meanwhile, the crude oil crisis in Canada, continues to accelerate!
Laura Caplin was born and raised in the busy city of Oakville. As a journalist, Laura has contributed to many online publications including the Financial Post and Huff Post Canada. In regards to academics, Laura earned a degree in business from Lakehead University in Thunder Bay and an master’s degree from Brook. Laura follows the money and covers all aspects of state and federal economy.here at White Pine Tribune.