The Canadian black Gold

An Expert's View about Oil in Canada

Last updated: 14 Jan 2012

No one can deny that our life's activities rely on oil, beside other needs (water, internet…etc), however oil has become important as the water is; The water for your body, and the oil for your car, generators, motors and machines.
So just imagine with the whole number of cars and machines, and factories and around the word, how much oil consumption every day! (USA the top country of consuming oil per day; 19,150,000 barrel per day, second European Union, 13,730,000 bbl/day, third China with 9,189,000 bbl/day, Japan fourth with 4,452,000 bbl/day and India fifth with 3,182,000 bbl/day), and which could be about 90 million barrel worldwide oil consuming every day (almost USA is consuming the fifth of that).
However in this article I am narrowing the topic to discuss briefly and economically about the oil in Canada and how this oil is being processed.
Once talking about oil, most of us think about the Arab Gulf countries, and specifically Saudi Arabia, and it is normal since K.S.A is the number one oil producer in the world with 7,635,000 bbl/day, including crude oil and oil products, with oil consumption of 2,643,000 bbl/day.(2010 est.)
Canada daily consuming of oil is 2,209,000 barrel, where it is exports are 1,929,000 bbl/day (2009 est.)
With more elaboration, Canada has extensive oil and natural gas resources right across the country. Canada is the third largest producer of natural gas, the fifth largest energy producer and the seventh largest producer of crude oil in the world.
Canadian energy production has almost doubled since 1980. The oil reserves total 175 billion barrels, of which 170 billion barrels can be recovered from the oil sands using today's technology. As of January 2011, Canada is the third to Venezuela and Saudi Arabia in terms of global oil reserves.

Canada has approximately six billion barrels of oil located outside the oil sands. Conventional oil is either light or heavy. Heavy refers to oil with a thick consistency that does not flow easily.
Light oil can flow naturally to the surface or is extracted from the ground using pumpjacks. Pumpjacks are also used to remove heavy oil from the ground.
Canada’s oil industry produces over 2.6 million barrels of oil per day and is part of the global crude oil market. Crude oil is one of the most actively traded commodities in the world. Because of this, oil prices change daily in response to changing conditions that affect supply and demand.
Across the world, the demand for oil has gone up steadily over the past 20 years, growing from 60 million barrels per day to 88 million. A lot of this growth is due to oil demand in emerging economies like China and India.
The oil sands provide a secure supply in a world of political risk. There are challenges in developing the oil sands, but the industry (Canadian association of Petroleum Producers- CAPP) is making progress through investment in technology and innovation. The entry costs for new oil sands projects can be daunting, but the decline in availability of traditional energy sources makes the oil sands key to our energy future.
Oil sands reserves have only recently been considered to be part of the world's oil reserves, as higher oil prices and new technology enable them to be profitably extracted and upgraded to usable products. They are often referred to as unconventional oil.

As in a report released on Sep. 2011, it shows that three countries exported more than 1,000 thousand barrels per day to the United States. The top five exporting countries accounted for 69 percent of United States crude oil imports in September while the top ten sources accounted for approximately 88 percent of all U.S. crude oil imports. The top five sources of US crude oil imports for September were Canada (2,324 thousand barrels per day), Saudi Arabia (1,465 thousand barrels per day), Mexico (1,099 thousand barrels per day), Venezuela (759 thousand barrels per day) and Nigeria (529 thousand barrels per day).
Canada remained the largest exporter of total petroleum in September, exporting 2,829 thousand barrels per day to the United States, which is an increase from last month (2,637 thousand barrels per day). The second largest exporter of total petroleum was Saudi Arabia with 1,479 thousand barrels per day.
In addition, and as mentioned before when it comes to oil reserves Canada ranks third with proved reserves of crude oil for 175 billion barrels (175,200,000,000) after Saudi Arabia (262,600,000,000) and Venezuela (211,200,000,000) (Jan.2011 est.)
Seeing briefly the info above and the importance of crude oil (black gold) to Canada as a major country of stabilizing the oil price in case of any shortage or economic crisis can play an important role in North American especially for US that really depends on Canadian oil, and can be another factor for strengthening the Canadian dollar.
And despites the challenges and difficulties that are facing the sand Oil but it seems that it will be an alternative resources if oil wells have waned or dried, but the development progress in technology in Canada will eliminate such obstacle. However the existence of Canadian oil is a strong asset to Canada giving the country an extra economic key to use it once a serious problem in the petroleum business arises.

Posted: 13 January 2012, last updated 14 January 2012

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