RE: RE: RE: Cost Of Production, Saturnyou think that's amazing.just check out what the monkeys think is a good idea.I guess building a pipeline and creating thousands of jobs has not occurred to anybody yet.
A day in the life of Danny D’Amours
According to the US department of energy, Canada is listed as the worlds 15th largest net exporter of oil.
You would think that since we are such a large exporter of oil thatwe wouldn’t need imports to satisfy our oil needs. Unfortunately thatisn’t the case. A large portion of the eastern half of Canada uses oilimported from other countries. Several refineries including therefineries in Saint John, New Brunswick, Dartmouth, Nova Scotia andseveral in Quebec rely heavily (if not exclusively) on imported crudeoil.
From Stats Canada, for 2006 : Total crude oil supply was 103,974.1thousand cubic meters with 49,284.9 or over 47% of that being imported.Wow! Large imports of crude were purchased from Algeria, Iraq, SaudiArabia, Nigeria and Venezuela, the UK and Norway. With the proposedIrving refinery in production, that import figure would be well over50%. There is a case to be made that a fraction of those oil importsare refined in Canada and subsequently exported to the United States.In effect this reduces the US’s listed OPEC imports and reliance onMiddle East oil.
The chief reason for these imports of oil while there is a largeamount of crude out west is lack of transportation. There is currentlyno pipeline connecting Western and Central Canada to Eastern Canada asall of the pipelines are currently used to transport oil and otherproducts south to the major markets of the US.
Because of this fact, we are at the whims of world markets andsupply and demand. If war was to break out and international shipmentsof crude were halted (or diverted to another neighbouring country), wewould have some serious issues.
One way to overcome this problem is to build an oil pipeline intoeastern Canada. Not only would this give us energy security if a crisiswere to ever occur, but it would also allow us to keep our dollars inCanada. An east-west pipeline connection could also alleviate somesupply issues which can and do occur. I realize that due to therelatively small size of the eastern market, the cost of the pipelinewould not be financially viable but if we examine it from a nationalsecurity and risk management perspective, it could be justified. Italso allows Canada to be truly independent with regards to oil andpetroleum supply.
This east west oil supply issue has been around for a long time as can be seen in this 1974 article from Time magazine. More recent articleshave also been written on the subject. I I don’t expect anything tohappen in the short term with regards to this issue since the West ishaving enough problems getting pipeline capacity to export oil to the US. Hopefully it won’t come to a crisis point for people to relize how dependent we are on foreign oil.
July 28th, 2007Posted byDanny D'Amours |
Atlantic Canada,
Economics,
A day in the life of Danny D’Amours
According to the US department of energy, Canada is listed as the worlds 15th largest net exporter of oil.
You would think that since we are such a large exporter of oil thatwe wouldn’t need imports to satisfy our oil needs. Unfortunately thatisn’t the case. A large portion of the eastern half of Canada uses oilimported from other countries. Several refineries including therefineries in Saint John, New Brunswick, Dartmouth, Nova Scotia andseveral in Quebec rely heavily (if not exclusively) on imported crudeoil.
From Stats Canada, for 2006 : Total crude oil supply was 103,974.1thousand cubic meters with 49,284.9 or over 47% of that being imported.Wow! Large imports of crude were purchased from Algeria, Iraq, SaudiArabia, Nigeria and Venezuela, the UK and Norway. With the proposedIrving refinery in production, that import figure would be well over50%. There is a case to be made that a fraction of those oil importsare refined in Canada and subsequently exported to the United States.In effect this reduces the US’s listed OPEC imports and reliance onMiddle East oil.
The chief reason for these imports of oil while there is a largeamount of crude out west is lack of transportation. There is currentlyno pipeline connecting Western and Central Canada to Eastern Canada asall of the pipelines are currently used to transport oil and otherproducts south to the major markets of the US.
Because of this fact, we are at the whims of world markets andsupply and demand. If war was to break out and international shipmentsof crude were halted (or diverted to another neighbouring country), wewould have some serious issues.
One way to overcome this problem is to build an oil pipeline intoeastern Canada. Not only would this give us energy security if a crisiswere to ever occur, but it would also allow us to keep our dollars inCanada. An east-west pipeline connection could also alleviate somesupply issues which can and do occur. I realize that due to therelatively small size of the eastern market, the cost of the pipelinewould not be financially viable but if we examine it from a nationalsecurity and risk management perspective, it could be justified. Italso allows Canada to be truly independent with regards to oil andpetroleum supply.
This east west oil supply issue has been around for a long time as can be seen in this 1974 article from Time magazine. More recent articleshave also been written on the subject. I I don’t expect anything tohappen in the short term with regards to this issue since the West ishaving enough problems getting pipeline capacity to export oil to the US. Hopefully it won’t come to a crisis point for people to relize how dependent we are on foreign oil.
July 28th, 2007Posted byDanny D'Amours |
Atlantic Canada,
Economics,