Monday, April 16, 2012

Mr. Harper & Flaherty – This is about Oil

Mr. Harper & Flaherty – This is about Oil

Read the contents of this commentary and do some simple multiplication. 175,000,000,000 billion barrels of oil at $100.00 per barrel = $17,500,000,000,000 (that's trillions of dollars in oil reserves). Canada could pay-out the national debt of the U.S.A. and still have some change left-over.

Why are Canadians being raped at the “gas pump”? The oil which Canada produces is being sold for as much as 25% less in the USA. Canadians are paying approximately $5.25 per Imperial U.S. Gallon for oil (i.e. 3.87 litres). Currently, the Canadian and U.S. dollar are at par! Countries and businesses all over the world strive to find a competitive advantage. It appears the U.S. government has found their competitive advantage – “taking advantage of Canadians”.

Below are a few facts and figures to consider:

Canada has 175 billion barrels of proven oil reserves and currently ranks “sixth” in the world for total production. Canadian oil production has steadily risen over the past few years, increasing 542 million barrels per day (mb/d) or 21% between 2005 to 2011. Much of this increase is due to Alberta’s oil sands production, which BENTEK expects to continue rising in the coming years. Combined with conventional plays, BENTEK expects oil production in Canada to rise 23% or 763,000 mb/d from 2012 to the end of 2016. According to CAPP, Canada has the third largest oil reserves in the world with 175 billion barrels.

In 2005 Canada exported almost 1.5 million barrels per day to the United States, about 7 percent of U.S. daily consumption. Canada exports 66 percent of its domestic crude oil production and since 1995 the United States has received 99 percent of these exports.

…..over the next 20 years, BP says China and India will account for 94 per cent of the net worldwide increase in oil demand. At the moment, about 97 per cent of Canada’s crude oil exports go to the U.S. Virtually no Canadian crude makes its way to any other markets, including China or India. Now that’s what you call a mismatch between supply and demand.

Overall, total Canadian oil production is expected to grow from 2.8 million b/d in 2010 to 4.7 million b/d in 2025. This is about 401,000 b/d higher than previously forecast, due primarily to the higher conventional production and the inclusion of some additional in situ projects that were previously put on hold. Please view details of this full report at:

Global oil demand in 2012 is expected to grow by 800,000 b/d from 2011…..according to the latest monthly oil market report from the International Energy Agency……..The Paris-based IEA now expects demand to average 89.9 million b/d this year, as the International Monetary Fund cut its forecast of the economic growth rate that underpins the worldwide oil demand outlook to 3.3% from the 4% outlook that had been assumed since September 2011. The IMF expects a contraction in 2012 economic activity in the Euro zone countries……..IEA still sees robust oil demand growth of 1.2 million b/d in the developing countries outside the Organization for Economic Cooperation and Development (OECD…….US demand is forecast to average 18.8 million b/d, down from last year’s 18.89 million b/d, while Canadian demand is seen slipping to 2.21 million b/d from 2.23 million b/d.

Have you noticed? We produce approximately 2.8 mb/d (statistics from 2010) and consume 2.21 mb/d. Well, so much for energy independence! Our wealth is being stolen at the gas pump. The penny increases in gasoline prices are creating multi-billion bottom lines for oil companies. Do some research and see who the major shareholders of these oil companies are – kings and queens should provide a bit of the clue. Penny increases for now, soon to be nickel increases. When they shave the beaver it will be dime increases!

Get rid of the kings and queens! Take back our money.
Joseph Pede

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