CANADA: THE OIL SANDS MAY SAVE THE ECONOMYfr. Michael Berry
2. CANADA: THE OIL SANDS MAY SAVE THE ECONOMY
“Looking ahead, its importance is only going to get bigger.”
Daniel Yergin, Cambridge Energy Research
On May 18, the New York Times published the following article titled,
“Reliance on Oil Sands Grows Despite Environmental Risks.”
This article was published more than a month after BP’s debacle in the Gulf. Till now Canada’s
oil sands have been uniformly trashed, threatened with taxes and degraded by the US
Administration and Congress. Yet the Times commented,
“There is no chance of a rig blowout here, or a deepwater oil spill like the one from the BP well
that is now fouling the Gulf of Mexico.”
They are right and though the article continues to discuss damage to Alberta’s boreal forests, the
huge sludge ponds and the water foul that die in the toxic wastes generated in the oil sands, it is
very clear that these Canadian resources are critical to a successful recovery and the sustenance of
the US economy. Canada’s oil sands deliver 1 million barrels of oil each day to thirsty American
drivers. This is more than 50% of total Canadian imports (1.9 million Canadian barrels per day
overall).
Daniel Yergin, an oil historian and chairman of IHS CERA said,
“The uncertainty and the slowdown in drilling permits in the gulf really underscores the
growing importance on Canadian oil sands, which over the last decade have gone from
being a fringe energy source to being one of strategic importance ... looking ahead its
only going to get bigger.”
By 2030 Canada’s oil sands will supply 36% of U.S. transportation needs. Does it sound
like the oil sands of Alberta are fading away under environmental pressure?
Not going to happen.
God Bless the Great White North! A few months ago the Alberta’s Deputy Premier
presented the case for the oil sands at the Harvard Club here in New York. He was very
convincing; indeed and he was warmly received by the audience. My gut feel, and my
Canadian heritage tell me that Canadian technology is up to the discovery, extraction and
reclamation task that will help us over the next few decades of fossil fuel dependency.
Should there be a pipeline accident (accidents do happen) in the two new pipelines that are
necessary to carry the Canadian oil south; Canada will be up to the task of an expedient
MORNING NOTES 3 OF 3 6/3/2010
solution. Canada’s track record in such instances is unblemished. For example Canada’s
CANDU Nuclear development track record is excellent.
A few weeks ago I was on a panel in Saskatoon discussing such issues with Saskatchewan’s
Premier, the Honourable Brad Wall. Here is a man with a vision for Saskatchewan.
Saskatchewan’s oil sands, shale oil and Bakken oil resources have not even been touched. I
am a big backer of companies that are moving into the Saskatchewan discovery space. Oil
Sands Quest (BQI AMEX NYSE) is one such company. The province is not only rich in oil
sands, shale oil, conventional oil, natural gas and coal but it is also rich in uranium, potash
and agriculture. This is one Canadian Province whose time has come.
David L. Goldwyn, coordinator for international energy affairs, U.S. State Department said,
“It is undeniable that having a large supply of crude oil available by pipeline from a
friendly neighbor is extremely valuable to the energy security of the United States,”
The phrase, “friendly neighbour” rings a reassuring bell. There is however a fly in this
ointment. China is aggressively buying up Canadian resources including those in the oil
sands. But the good news is that in spite of the tragedy in the deep waters of the Gulf,
important Americans in the energy space, such as Daniel Yergin, have embraced the reality
of the new energy economics and the interim role that oil must play in this transition.
2. CANADA: THE OIL SANDS MAY SAVE THE ECONOMY
“Looking ahead, its importance is only going to get bigger.”
Daniel Yergin, Cambridge Energy Research
On May 18, the New York Times published the following article titled,
“Reliance on Oil Sands Grows Despite Environmental Risks.”
This article was published more than a month after BP’s debacle in the Gulf. Till now Canada’s
oil sands have been uniformly trashed, threatened with taxes and degraded by the US
Administration and Congress. Yet the Times commented,
“There is no chance of a rig blowout here, or a deepwater oil spill like the one from the BP well
that is now fouling the Gulf of Mexico.”
They are right and though the article continues to discuss damage to Alberta’s boreal forests, the
huge sludge ponds and the water foul that die in the toxic wastes generated in the oil sands, it is
very clear that these Canadian resources are critical to a successful recovery and the sustenance of
the US economy. Canada’s oil sands deliver 1 million barrels of oil each day to thirsty American
drivers. This is more than 50% of total Canadian imports (1.9 million Canadian barrels per day
overall).
Daniel Yergin, an oil historian and chairman of IHS CERA said,
“The uncertainty and the slowdown in drilling permits in the gulf really underscores the
growing importance on Canadian oil sands, which over the last decade have gone from
being a fringe energy source to being one of strategic importance ... looking ahead its
only going to get bigger.”
By 2030 Canada’s oil sands will supply 36% of U.S. transportation needs. Does it sound
like the oil sands of Alberta are fading away under environmental pressure?
Not going to happen.
God Bless the Great White North! A few months ago the Alberta’s Deputy Premier
presented the case for the oil sands at the Harvard Club here in New York. He was very
convincing; indeed and he was warmly received by the audience. My gut feel, and my
Canadian heritage tell me that Canadian technology is up to the discovery, extraction and
reclamation task that will help us over the next few decades of fossil fuel dependency.
Should there be a pipeline accident (accidents do happen) in the two new pipelines that are
necessary to carry the Canadian oil south; Canada will be up to the task of an expedient
MORNING NOTES 3 OF 3 6/3/2010
solution. Canada’s track record in such instances is unblemished. For example Canada’s
CANDU Nuclear development track record is excellent.
A few weeks ago I was on a panel in Saskatoon discussing such issues with Saskatchewan’s
Premier, the Honourable Brad Wall. Here is a man with a vision for Saskatchewan.
Saskatchewan’s oil sands, shale oil and Bakken oil resources have not even been touched. I
am a big backer of companies that are moving into the Saskatchewan discovery space. Oil
Sands Quest (BQI AMEX NYSE) is one such company. The province is not only rich in oil
sands, shale oil, conventional oil, natural gas and coal but it is also rich in uranium, potash
and agriculture. This is one Canadian Province whose time has come.
David L. Goldwyn, coordinator for international energy affairs, U.S. State Department said,
“It is undeniable that having a large supply of crude oil available by pipeline from a
friendly neighbor is extremely valuable to the energy security of the United States,”
The phrase, “friendly neighbour” rings a reassuring bell. There is however a fly in this
ointment. China is aggressively buying up Canadian resources including those in the oil
sands. But the good news is that in spite of the tragedy in the deep waters of the Gulf,
important Americans in the energy space, such as Daniel Yergin, have embraced the reality
of the new energy economics and the interim role that oil must play in this transition.
this is the link https://www.discoveryinvesting.com/uploads/MNs_Thursday__June_3_2010.pdf