In recent years, there has been a growing trend in modern society that food must originate from the region and a declaration as 'organic' is now considered mandatory. Coffee beans from distant countries should definitely carry the label 'Fairtrade' and blood diamonds are rightly considered frowned upon. Consumers have changed the supply with their purchasing and market power. When will the oil market change?
Top 10 oil production
The global oil market is as large as all other commodity markets combined. It is therefore all the more important that this market functions properly, i.e. that supply and demand can meet in equal quantities to ensure fair pricing. In October 2019, the
USA led the list of producing countries with a quantity of 12.6 million barrels per day.
Russia ranked second with 10.6 million barrels, followed by Saudi Arabia with 10.3 million barrels, Iraq with 4.6 million barrels and China with 3.8 million barrels. In sixth place was Canada with 3.6 million barrels per day, followed by Kuwait with 2.6 million barrels, Nigeria with 2.0 million barrels, Norway with 1.5 million barrels and Angola with 1.4 million barrels.
Tolerance despite death penalties
It is no secret that countries that rely on large deposits of raw materials are not necessarily modern and developed. Often dictators and autocrats have such countries firmly in their grip and the revenues tend to
seep into private pockets rather than to promote and advance society.
For example, the death penalty is on the agenda in many producing countries and a large part of the
proceeds from oil production goes into the military budget. The latter is probably also one reason why the political tolerance of the Western world towards countries with little understanding of human rights is so great.
More than 100 million barrels per day
With its high environmental standards,
Canada is virtually the 'organic farmer' among the oil-producing countries. Based on facts, it is probably only a matter of time before a new trend emerges that oil must come from countries that, like Canada, protect the environment and respect human rights.
A development that will also benefit the companies
Saturn Oil & Gas (TSXV: SOIL), TORC Oil & Gas (TSX: TOG) and Whitecap Resources (TSX: WCP). The demand for oil in modern society will remain unbroken for many decades to come. Demand will continue to come not only from the energy sector, but also from other processing industries that require crude oil as an ingredient. Would consumers at the gas station prefer harmless fuel?
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