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1 hour ago, deicer said:

I highlighted the last paragraph because it shows that the generation that wanted oil powered transportation is going to be out grown by a generation raised on cleaner modes.

The most populated country in the world seems to disagree

China — willing to pay any price for coal — threatens world's fuel supply 

The dirtiest fossil fuel, which was struggling against cleaner energy sources, is now seeing its biggest comeback ever

China, the world’s top coal consumer, is in dire need of more supply and is willing to pay any price — a move that threatens to leave less fuel for energy-starved rivals.

With winter on the way for much of the world and natural gas prices at record levels, economies across the globe are competing for a finite supply of coal. At the center of the scramble is China, where stockpiles are low and demand is at an all-time high. The dirtiest fossil fuel, which was struggling against cleaner energy sources, is now seeing its biggest comeback ever, complicating international climate talks set to begin in just a few weeks.

https://financialpost.com/commodities/energy/chinas-coal-shortage-means-higher-prices-for-the-whole-world?utm_medium=Social&utm_source=Facebook&fbclid=IwAR3EIzjJoU5r1FYT_1dklnyDRqGTePeIdA6lBg6x0PFijgVdO9PSDbZSUp4#Echobox=1632848452

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Global bull market for natural gas could cascade across commodity complex, set us up for 'darkest of winters' 

 

 

Some energy observers believe that ambitious climate policies are not in tune with the reality of the world’s current energy needs.

But policymakers are trying to reduce consumption by restricting supply without changing the sources of power plants.

“In such a situation supply would have to be rationed by skyrocketing prices, leading to factory closures, energy poverty risk for lower income families and similar consequences whose social acceptance remains to be seen,” Varro wrote. “The current market situation should refocus the policy conversation on reducing demand rather than artificially restricting supply.”

“ The very same voices who argued that investment in gas supply has to stop ... now declare that it is inadequate gas supply rather than climate policy that is responsible for skyrocketing prices”

https://financialpost.com/commodities/energy/oil-gas/global-bull-market-for-natural-gas-could-cascade-across-commodity-complex-set-us-up-for-darkest-of-winters?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook&fbclid=IwAR16p229lXNG0mQiE9lkO7VzA5XlkUU3YlyXTxD5H_KmzQ-TQQLGVayL1hs#Echobox=1632908711

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We are once again at a conjuncture where history is repeating itself.

Wasn't it in the early 1900's that there were those who said cars/lightbulbs/bicycles/talking pictures/etc would never catch on?

It's happening again...

https://artsandculture.google.com/story/the-everyday-inventions-people-never-thought-would-catch-on/dAJy2GNl1ScYLQ

https://www.freecodecamp.org/news/worst-tech-predictions-of-the-past-100-years-c18654211375/

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2 hours ago, deicer said:

 

Wasn't it in the early 1900's that there were those who said cars/lightbulbs/bicycles/talking pictures/etc would never catch on?

It's happening again...

 

I remember my Mom quoting my grandfather, a rancher, when he said that these automobiles will never catch on. They scare the horses.

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Foreign oil imports to Canada: $488 billion between 1988 and 2020

Despite being a world leader in crude oil reserves and production Canada's reliance on foreign oil is significant

By Lennie Kaplan and Mark Milke
 on September 24, 2021, 4:11 pm MDT
GettyImages-170619987-scaled-e1632434083 An oil tanker in Quebec City. Getty Images photo
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To sign up to receive the latest Canadian Energy Centre research to your inbox email: research@canadianenergycentre.ca

Download the PDF here

Download the charts here


 

Overview

Despite Canada’s position as one of the world’s top oil producers with one of the largest global oil reserves, crude oil imports into Canada have become a significant part of the country’s energy mix, particularly since 2000.

This Fact Sheet uses Statistics Canada’s International Merchandise Trade Database to track the flow of imports of crude oil (i.e., petroleum oils and oils obtained from bituminous minerals) into Canada between 1988 and 2020. We then analyze the source of those imports by country, break down the oil imports by province, and then break down the 2010 to 2020 figures. We also compare the value of crude oil imports with other imports to provide a sense of the relative value of Canada’s oil imports.¹

In short:

  • Between 1988 and 2020, Canada spent $488 billion nominal ($604 billion in 2020 dollars) on foreign oil imports;
  • Quebec is by far the largest importer of foreign oil into Canada, importing $228 billion worth of foreign oil since 1988;
  • Between 2010 and 2020, Canada’s oil imports from just the United States and Saudi Arabia totaled over $110 billion;
  • Using census data from 2016, along with our own calculations, we determined that the value of foreign oil imports that year amounted to $1,021 per household based on a national average (including Quebec); and
  • When the value of Quebec’s foreign oil imports in 2016 is matched to the number of households in Quebec that year, foreign oil imports to Quebec were worth $1,576 per household annually in 2016.

1. There are a number of factors that explain Canada’s level of foreign crude oil imports, including the type of oil a refinery is designed to process and ongoing pipeline constraints. In this Fact Sheet, we do not offer “pro” or “con” policy prescriptions; just hard data which the public and policymakers can use as a base for discussion. Note that we make clear in other reports that Canada is a net beneficiary of the international oil trade and for that and other reasons—the benefits of free trade writ large—the data herein should not be interpreted as a call to restricted trade in oil, but rather, an end to artificial, activist, and political barriers and for Canada’s crude oil to be extracted and shipped cross-country to be used domestically and internationally.

Canada has imported nearly 9 billion barrels of foreign oil since 1988

Between 1988 and 2020, Canada imported nearly nine billion barrels of crude oil from other countries, an average of over 745,000 barrels per day over the period. Crude oil imports into Canada more than doubled between 1988 and 2008, increasing from 148 million barrels to nearly 329 million barrels annually. Since 2008, crude oil imports to Canada have fallen by about 37 per cent, yet at over 206 million barrels in 2020, they remain nearly 39 per cent above the 1988 level.

The value of foreign oil imports from 1988 to 2020: $488 billion nominal or $604 billion in 2020 dollars

The value of crude oil imports into Canada grew gradually between 1988 and 1999, from $2.8 billion to $6.9 billion in those years. Foreign crude oil imports then nearly doubled to $13.7 billion in 2000 and continued to grow steadily to nearly $34 billion by 2008 (see figure 1). There was a sharp decline to $21 billion worth of imports in 2009, coinciding with the Great Recession, but growth resumed and crude oil imports reached $29.8 billion in 2012. Despite lower crude prices beginning in 2014, the value of annual foreign crude oil imports into Canada remained at over $14 billion through to 2019 when imports reached $18.9 billion before falling to $11.5 billion in 2020 due to COVID-19.

In total, between 1988 and 2020, Canada spent $488 billion importing crude oil from such countries as Saudi Arabia, Iraq, Russia, Azerbaijan, Nigeria, Algeria, Angola, Venezuela, and Kazakhstan, as well as the United Kingdom, Norway and, more recently, the United States.

  • On an inflation-adjusted basis, Canada spent $604 billion importing foreign crude oil between 1988 and 2020.
  • On an inflation-adjusted basis, Canada spent $5.5 billion on foreign oil imports in 1988 ($2.8 billion in nominal dollars) compared with the $18.9 billion it spent on such imports in 2020.

Fig-1-CEC-FS-40-1800x0-c-default.jpg

Source: Derived from Statistics Canada, Canadian International Merchandise Trade Database.

Foreign oil imports by province from 1988 to 2020: Quebec highest at $228 billion

Between 1988 and 2020, Canada’s foreign crude oil imports in nominal dollars ranged from nil in Prince Edward Island and $200 million in British Columbia to $228 billion in Quebec where import values were the highest (see Figure 2a).

Central and Eastern Canada are generally more reliant on foreign oil imports than Western Canada, in part due to the lack of critical pipeline infrastructure from Western Canada. Insufficient pipeline capacity continues to be a problem despite the 2015 reversal/expansion of Enbridge’s Line 9B pipeline, which has enabled Ontario and Quebec refineries to source more oil from Western Canada. Historically, New Brunswick’s Irving Oil Refinery also relies on foreign oil imports.

Fig-2a-CEC-FS-40-1800x0-c-default.jpg

Source: Derived from Statistics Canada, Canadian International Merchandise Trade Database.

Value of foreign oil imports per household

Combining census data from 2016 on the number of households with the value of foreign oil imports that year allows for a per-household comparison (see figure 2b).

  • In 2016, the value of foreign oil imports to all of Canada was just under $14.4 billion. Quebec’s portion of such imports was nearly $5.6 billion. There were nearly 14.1 million households in Canada that year, with over 3.5 million of them in Quebec;
  • The value of foreign oil imports amounted to $1,021 per household based on a national average (including Quebec); and
  • When the value of Quebec’s foreign oil imports in 2016is matched to the number of Quebec households, the value of foreign oil imports to Quebec was $1,576 per household.

Fig-2b-CEC-FS-40-1200x0-c-default.jpg

Sources: Derived from Statistics Canada, Canadian International Merchandise Trade Database and the 2016 Census

Foreign crude oil imports by country from 1988 to 2020

Canada has imported crude oil from a number of countries over the past three decades (see figure 3). Between 1988 and 2020, the five largest exporters of foreign crude oil to Canada were the United States ($94.6 billion), followed by Norway ($79.0 billion), the United Kingdom ($62.6 billion), Algeria ($58.4 billion), and Saudi Arabia ($44.4 billion).

Fig-3-CEC-FS-40-1200x0-c-default.jpg

Source: Derived from Statistics Canada, Canadian International Merchandise Trade Database

Canada’s historic oil suppliers: The United Kingdom, Norway, and Nigeria

  • The United Kingdom was once a consistent source of foreign crude oil for Canada; imports from it reached an annual value of $5.2 billion in 2008 before falling off in the current decade as its oil production declined; as of 2020, the value of U.K. oil imports to Canada was just $63 million.
  • Norway was also once a significant source of foreign crude oil for Canada; the value of imports from it reached over $5.6 billion in 2008, but fell off with the Great Recession of 2009 and the crude oil price decline that started in 2014. In 2020, the value of oil imported to Canada from Norway was just $345 million.
  • Nigeria has been another major source of foreign crude oil for Canada; the value of imports from that country peaked at $2.4 billion in 2011, but fell off to just $611 million in 2020.
  • Venezuela was also a source of foreign crude oil for Canada between 2000 and 2007 at a value of nearly $11.8 billion, but as of 2008, Canada imported no oil from Venezuela;
  • Algeria emerged as a key source of foreign crude oil for Canada between 2000 and 2013; the value of imports from it peaked at nearly $6 billion in 2012 before falling to zero between 2016 and 2020; and
  • Other nations such as Azerbaijan, Angola, and Kazakhstan have also been sources of crude oil for Canada, primarily between 2008 and 2014.

Since 2005, Saudi Arabia has increasingly become a key source of foreign crude oil for Canada. And after 2007 when its shale oil production began to soar, the United States also increased its role as a significant supplier of crude oil to Canada.

From 2010 to 2020 Canada relied more heavily on the United States and Saudi Arabia

Canada’s mix of suppliers of foreign crude oil has become less diverse over time, particularly in the last decade.

  • Between 2010 and 2020, Canada’s oil imports were worth a total of $231.1 billion. U.S. oil imports accounted for nearly $84.2 billion, followed by imports from Saudi Arabia at $26.3 billion. That is over $110 billion in foreign oil imported to Canada from those two countries alone in that decade (see Figure 4).

Fig-4-CEC-FS-40-1500x0-c-default.jpg

Derived from Statistics Canada, Canadian International Merchandise Trade Database.

Imports of crude oil compared with imports from other key sectors, 2010 to 2020

Canada spent nearly $238 billion on crude oil imports between 2010 and 2020 (see Figure 5). This is:

  • Higher than the almost $192 billion Canada spent on farm, fishing, and intermediate food products imports;
  • Higher than the nearly $205 billion Canada spent on aircraft and other transportation equipment and parts imports; and
  • Just below the $256 billion Canada spent on forestry products and building and packaging materials imports.

Fig-5-CEC-FS-40-1200x0-c-default.jpg

Source: Derived from Statistics Canada, Canadian International Merchandise Trade Database

Comparing imports of oil from Saudi Arabia worth over $26 billion with other imports

Between 2010 and 2020, Canada spent over $26.3 billion on crude oil imported from Saudi Arabia (see Figure 6). This $26.3 billion expenditure is larger than the:

  • $1.7 billion Canada spent importing coffee from Brazil;
  • $2.5 billion Canada spent importing coffee from Colombia;
  • $7.8 billion Canada spent importing fruits, nuts, citrus fruits, and melons from Mexico;
  • $9.2 billion Canada spent importing edible vegetables and certain roots and tubers from Mexico;
  • $16.4 billion Canada spent importing footwear from China; and
  • $19.9 billion Canada spent importing pharmaceutical products from Germany

Fig-6-CEC-FS-40-1800x0-c-default.jpg

Source: Derived from Statistics Canada, Canadian International Merchandise Trade Database

A 2020 snapshot: 89% of all the oil imported to Canada comes from the U.S. and Saudi Arabia

In 2020, the U.S. was Canada’s largest source of foreign crude oil at a value of nearly $8.8 billion, followed by Saudi Arabia at a value of $1.5 billion (see Figure 7). Together, these two countries were the sources of about 89 per cent of all the oil imported by Canada, or nearly $10.3 billion of the $11.5 billion total value of that oil in 2020. Other countries were very distant thirds as sources for crude, such as Nigeria (at a value of $611 million), Norway ($345 million), and the United Kingdom ($63 million).

Fig-7-CEC-FS-40-1200x0-c-default.jpg

Source: Derived from Statistics Canada, Canadian International Merchandise Trade Database

Conclusion

Imports of crude oil to Canada have been rising over the past two decades and the value remains high ($11.5 billion in 2020) despite the decline in crude oil prices beginning in 2014 and continuing with the onslaught of COVID-19 in 2020.

While Canada is among the world leaders in both crude oil reserves and crude oil production, it spent $488 billion between 1988 and 2020 to bring in crude oil from such countries as Saudi Arabia, Russia, Azerbaijan, Nigeria, Algeria, Angola, Venezuela, and Kazakhstan, along with United Kingdom, Norway and, more recently, the United States.

Quebec has been the largest importer of foreign oil between 1988 and 2020 (45 per cent of the total imported to Canada), at a value of $228 billion.

The value of foreign oil imports per household, using 2016 census data, was $1,021 per household (nationally, including Quebec) and $1,576 per household annually specific to Quebec.

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Interesting that the report was produced by the Alberta government.

Here is another view.

https://ipolitics.ca/2021/04/15/good-news-about-canadas-crude-imports-the-oil-patch-would-rather-you-not-know/

Good news about Canada’s crude imports the oil patch would rather you not know

By Alan Freeman. Published on Apr 15, 2021 5:39pm

'Energy East was never really about supplying Canadian refineries. It was just another desperate effort to find overseas markets for increasingly unmarketable oil sands bitumen.'

A constant refrain of the Alberta oil patch for years has been that there was something fundamentally twisted about Canada importing crude oil for its refineries in Eastern Canada while the West was awash with the stuff.

That argument was always a mainstay of the public justification for Energy East, TransCanada’s $15.7-billion pipeline that was mercifully killed in 2017 but still survives in the imaginations of some politicians, lobbyists and ill-informed commentators. Why should refineries in Quebec import oil from dastardly regimes in places like Saudi Arabia, Russia, Azerbaijan, Algeria and Angola when they could get “ethical” oil from Alberta and Saskatchewan, went the refrain.

Andrew Scheer, when he was briefly Tory leader, even argued in 2019 that Canada should halt all oil imports by 2030, arguing that Canada should stop buying oil from “rogue” states like Iran and Venezuela, which we haven’t imported from in years.

Here’s the latest bumph from the Canadian Association of Petroleum Producers’ website. “Despite having the world’s third-largest oil reserves, Canada imports oil from foreign suppliers. Currently, more than half the oil used in Quebec and Atlantic Canada is imported from foreign sources including the U.S., Saudi Arabia, Russian Federation, United Kingdom, Azerbaijan, Nigeria and Ivory Coast.”

Too bad it’s not true.

Guess how much crude Quebec’s two oil refineries imported last year from those supposedly awful places? Zero. And that’s for the second year in a row. 

According to the Canadian Energy Regulator’s latest analysis, Canadian crude oil imports tanked in 2020 because of low demand due to the pandemic, falling 20 per cent to just 550,000 barrels a day. An overwhelming proportion of Canada’s oil imports came from a single source, the United States of America, making up 77 per cent of crude imports, including all of the oil imported into Quebec and Ontario.

And the value of those imports plummeted by almost 40 per cent to $11.5-billion from 2019. Hardly a growth industry.

In fact, the only place in the country that’s still importing non-U.S. crude is the Irving refinery in Saint John, N.B., and even there it’s declining. As for refineries in Quebec and Ontario, they are either using domestic crude or oil from the U.S., some of which travels here on tankers from the Gulf of Mexico.

Last year, Irving even brought in some Western Canadian crude by tanker from B.C. through the Panama Canal to New Brunswick. And Newfoundland’s only refinery at Come-by-Chance, which shut early last year, also only used U.S. crude when it was operating.

In fact, Russia, Azerbaijan, Algeria and Angola were such insignificant suppliers to Canada last year that they no longer even turn up on the list of suppliers except perhaps in the “other” category. The only “undesirable” supplier with any volume to speak of is Saudi Arabia, which supplied 13 per cent of our imports, also down sharply. The value of those exports to Canada was $1.5 billion, pocket change for the Saudi regime.

Yet Diane Francis, the Financial Post columnist who never allows an uncomfortable fact to get in the way of a ridiculous argument, wrote just recently that resurrecting Energy East “would allow us to deal with the loss of Keystone XL and provide the added benefit of displacing around 500,000 barrels of oil a day that are imported into Eastern Canada from the despicable Saudi Arabian regime.”

In fact, we imported just 73,600 barrels a day of oil from Saudi Arabia last year. The figure of  500,000 barrels is what we imported from ALL sources, mainly the U.S. Why bother with details when you’re defending the oil sands? But Energy East was never really about supplying Canadian refineries. It was just another desperate effort to find overseas markets for increasingly unmarketable oil sands bitumen.

The real story is that U.S. oil output has soared and it’s become a significant exporter. In 2010, for example, only 6 per cent of our crude imports came from the States. Last year, it was 77 per cent. So the issue of imports from undemocratic suppliers has basically disappeared. But our oil industry prefers to look backward when it suits their purposes.

Last fall, the Canadian Energy Centre, the Kenney government’s propaganda arm, issued a report that breathlessly reported that $477-billion had been spent between 1988 and 2019 on oil imports to Canada from places like “Saudi Arabia, Russia and the U.S.” I’m not sure why they didn’t start at Confederation. They could have got an even bigger number.

And say if Canada decided to become oil self-sufficient. Try telling that to the Americans. Canada still relies overwhelmingly on the U.S. for its crude exports, sending 6.5 times more oil south than Canada imports. Canada is by far the largest exporter of oil to the U.S.

According to these brilliant folks, Canada should eliminate all U.S. imports while continuing to flood U.S.-bound pipelines with Alberta crude. I guess they figure the Americans would never notice the fundamental protectionist nature of this policy and its oil industry would be fine with Canada taking discriminatory actions against its exports. 

In fact, what’s going in here is a well-functioning integrated continental oil market, where a commodity flows back and forth across the border when it makes commercial and economic sense. And as it turns out, our oil imports are declining as demand falls, which is good news. 

But don’t tell that to the folks at the Canadian Association of Petroleum Producers or the Alberta government. Better to create bogeymen when none exist.

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2 hours ago, deicer said:

Interesting that the report was produced by the Alberta government.

Here is another view.

https://ipolitics.ca/2021/04/15/good-news-about-canadas-crude-imports-the-oil-patch-would-rather-you-not-know/

Good news about Canada’s crude imports the oil patch would rather you not know

By Alan Freeman. Published on Apr 15, 2021 5:39pm

'Energy East was never really about supplying Canadian refineries. It was just another desperate effort to find overseas markets for increasingly unmarketable oil sands bitumen.'

A constant refrain of the Alberta oil patch for years has been that there was something fundamentally twisted about Canada importing crude oil for its refineries in Eastern Canada while the West was awash with the stuff.

That argument was always a mainstay of the public justification for Energy East, TransCanada’s $15.7-billion pipeline that was mercifully killed in 2017 but still survives in the imaginations of some politicians, lobbyists and ill-informed commentators. Why should refineries in Quebec import oil from dastardly regimes in places like Saudi Arabia, Russia, Azerbaijan, Algeria and Angola when they could get “ethical” oil from Alberta and Saskatchewan, went the refrain.

Andrew Scheer, when he was briefly Tory leader, even argued in 2019 that Canada should halt all oil imports by 2030, arguing that Canada should stop buying oil from “rogue” states like Iran and Venezuela, which we haven’t imported from in years.

Here’s the latest bumph from the Canadian Association of Petroleum Producers’ website. “Despite having the world’s third-largest oil reserves, Canada imports oil from foreign suppliers. Currently, more than half the oil used in Quebec and Atlantic Canada is imported from foreign sources including the U.S., Saudi Arabia, Russian Federation, United Kingdom, Azerbaijan, Nigeria and Ivory Coast.”

Too bad it’s not true.

Guess how much crude Quebec’s two oil refineries imported last year from those supposedly awful places? Zero. And that’s for the second year in a row. 

According to the Canadian Energy Regulator’s latest analysis, Canadian crude oil imports tanked in 2020 because of low demand due to the pandemic, falling 20 per cent to just 550,000 barrels a day. An overwhelming proportion of Canada’s oil imports came from a single source, the United States of America, making up 77 per cent of crude imports, including all of the oil imported into Quebec and Ontario.

And the value of those imports plummeted by almost 40 per cent to $11.5-billion from 2019. Hardly a growth industry.

In fact, the only place in the country that’s still importing non-U.S. crude is the Irving refinery in Saint John, N.B., and even there it’s declining. As for refineries in Quebec and Ontario, they are either using domestic crude or oil from the U.S., some of which travels here on tankers from the Gulf of Mexico.

Last year, Irving even brought in some Western Canadian crude by tanker from B.C. through the Panama Canal to New Brunswick. And Newfoundland’s only refinery at Come-by-Chance, which shut early last year, also only used U.S. crude when it was operating.

In fact, Russia, Azerbaijan, Algeria and Angola were such insignificant suppliers to Canada last year that they no longer even turn up on the list of suppliers except perhaps in the “other” category. The only “undesirable” supplier with any volume to speak of is Saudi Arabia, which supplied 13 per cent of our imports, also down sharply. The value of those exports to Canada was $1.5 billion, pocket change for the Saudi regime.

Yet Diane Francis, the Financial Post columnist who never allows an uncomfortable fact to get in the way of a ridiculous argument, wrote just recently that resurrecting Energy East “would allow us to deal with the loss of Keystone XL and provide the added benefit of displacing around 500,000 barrels of oil a day that are imported into Eastern Canada from the despicable Saudi Arabian regime.”

In fact, we imported just 73,600 barrels a day of oil from Saudi Arabia last year. The figure of  500,000 barrels is what we imported from ALL sources, mainly the U.S. Why bother with details when you’re defending the oil sands? But Energy East was never really about supplying Canadian refineries. It was just another desperate effort to find overseas markets for increasingly unmarketable oil sands bitumen.

The real story is that U.S. oil output has soared and it’s become a significant exporter. In 2010, for example, only 6 per cent of our crude imports came from the States. Last year, it was 77 per cent. So the issue of imports from undemocratic suppliers has basically disappeared. But our oil industry prefers to look backward when it suits their purposes.

Last fall, the Canadian Energy Centre, the Kenney government’s propaganda arm, issued a report that breathlessly reported that $477-billion had been spent between 1988 and 2019 on oil imports to Canada from places like “Saudi Arabia, Russia and the U.S.” I’m not sure why they didn’t start at Confederation. They could have got an even bigger number.

And say if Canada decided to become oil self-sufficient. Try telling that to the Americans. Canada still relies overwhelmingly on the U.S. for its crude exports, sending 6.5 times more oil south than Canada imports. Canada is by far the largest exporter of oil to the U.S.

According to these brilliant folks, Canada should eliminate all U.S. imports while continuing to flood U.S.-bound pipelines with Alberta crude. I guess they figure the Americans would never notice the fundamental protectionist nature of this policy and its oil industry would be fine with Canada taking discriminatory actions against its exports. 

In fact, what’s going in here is a well-functioning integrated continental oil market, where a commodity flows back and forth across the border when it makes commercial and economic sense. And as it turns out, our oil imports are declining as demand falls, which is good news. 

But don’t tell that to the folks at the Canadian Association of Petroleum Producers or the Alberta government. Better to create bogeymen when none exist.

It would have done both, supplied the east and give a outlet for export........

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3 hours ago, Kargokings said:

It would have done both, supplied the east and give a outlet for export........

Unfortunately, eastern Canada refineries don't support bitumen.

The Canadian government subsidized oil producers to the sum of $18 BILLION last year, so you suggesting that they give even more?

https://www.cbc.ca/news/politics/fossil-fuel-subsidy-canada-1.5987392

In this second article, I highlighted the last bit to show that even though when this article was written in 2014, even the conservatives were against shipping oil east.

https://oilprice.com/Energy/Energy-General/Why-Canada-Would-Rather-Export-Oil-Than-Refine-It.html

Even if there were pipelines running from the Alberta oilfields to Eastern Canadian refineries, it is not at all certain the refineries could handle the feedstock.

That's because oil sands comes out of the ground as bitumen, which must be upgraded to lighter, synthetic crude to be able to flow in pipelines. There are no upgraders east of Alberta and only one refiner in Sarnia has a coker, leaving producers few choices but to flow the oil south. Refitting the refineries to receive oil sands crude is an expensive proposition that few refineries are willing to contemplate. These refineries are also competing against cheaper refining capacity in Asia, which would be only too happy to receive synthetic crude or raw bitumen from the oil sands.

There is one way for more refineries to be built in Canada, and that is through government subsidies. The Alberta government recently struck a deal with North West Upgrading and Canadian Natural Resources to build a bitumen refinery north of Edmonton. Under the deal, North West Upgrading will receive a quarter of its bitumen from CNR, and the rest from the Alberta government. The province will also kick in 75 percent of the operating expenses, on top of a debt-financing arrangement where CNR and Alberta each loan the company $300 million.  

While some see project as evidence of private sector confidence in boosting Canadian refining capacity, others say it is proof that new refineries and upgraders are not viable without government largesse. The current Conservative government has clearly indicated its preference for pipelines over refineries and a reliance on the market when it comes to the economics behind any new refining capacity.

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20 hours ago, deicer said:

Unfortunately, eastern Canada refineries don't support bitumen.

The Canadian government subsidized oil producers to the sum of $18 BILLION last year, so you suggesting that they give even more?

https://www.cbc.ca/news/politics/fossil-fuel-subsidy-canada-1.5987392

 

Don't you love how you are intentionally mislead by the frauds(such as CBC). They tell you how the fossil fuel industry got 18 billion is subsidies last year. Of course, one assumes that this is your money going in grants to them. Then you read the details put forth by the frauds and see that CEWS is in there, something that was given across the board to virtually all businesses.

"Thursday's report says that Export Development Canada (EDC) has given the most financial support to fossil fuel companies, accounting for $13.6 billion of the money they received. That sum includes supports for projects like the Trans Mountain Pipeline Expansion project and the Coastal Gas Link pipeline.

EDC said in an email it offers financial services like loans, equity and insurance to the oil and gas industry — not subsidies."

Folks, ignore the frauds, they are intentionally misleading you. The inevitable result of being foolish enough to believe the frauds: much higher expenses and blackouts.

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23 hours ago, deicer said:

Unfortunately, eastern Canada refineries don't support bitumen.

The Canadian government subsidized oil producers to the sum of $18 BILLION last year, so you suggesting that they give even more?

https://www.cbc.ca/news/politics/fossil-fuel-subsidy-canada-1.5987392

In this second article, I highlighted the last bit to show that even though when this article was written in 2014, even the conservatives were against shipping oil east.

https://oilprice.com/Energy/Energy-General/Why-Canada-Would-Rather-Export-Oil-Than-Refine-It.html

Even if there were pipelines running from the Alberta oilfields to Eastern Canadian refineries, it is not at all certain the refineries could handle the feedstock.

That's because oil sands comes out of the ground as bitumen, which must be upgraded to lighter, synthetic crude to be able to flow in pipelines. There are no upgraders east of Alberta and only one refiner in Sarnia has a coker, leaving producers few choices but to flow the oil south. Refitting the refineries to receive oil sands crude is an expensive proposition that few refineries are willing to contemplate. These refineries are also competing against cheaper refining capacity in Asia, which would be only too happy to receive synthetic crude or raw bitumen from the oil sands.

There is one way for more refineries to be built in Canada, and that is through government subsidies. The Alberta government recently struck a deal with North West Upgrading and Canadian Natural Resources to build a bitumen refinery north of Edmonton. Under the deal, North West Upgrading will receive a quarter of its bitumen from CNR, and the rest from the Alberta government. The province will also kick in 75 percent of the operating expenses, on top of a debt-financing arrangement where CNR and Alberta each loan the company $300 million.  

While some see project as evidence of private sector confidence in boosting Canadian refining capacity, others say it is proof that new refineries and upgraders are not viable without government largesse. The current Conservative government has clearly indicated its preference for pipelines over refineries and a reliance on the market when it comes to the economics behind any new refining capacity.

You are missing the point. It is likely that the refining capability would be added starting in alberta.

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How about this little gem of a headline: So now we better be praying for some man-made global warming to prevent a crisis created by the frauds who came up with the man-made global warming scam that so many bought into.

Oil could surge above $100 in the event of a cold winter - and spark inflation that drives the next macro crisis, BofA says

 

 

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6 hours ago, Junior said:

Don't you love how you are intentionally mislead by the frauds(such as CBC). They tell you how the fossil fuel industry got 18 billion is subsidies last year. Of course, one assumes that this is your money going in grants to them. Then you read the details put forth by the frauds and see that CEWS is in there, something that was given across the board to virtually all businesses.

"Thursday's report says that Export Development Canada (EDC) has given the most financial support to fossil fuel companies, accounting for $13.6 billion of the money they received. That sum includes supports for projects like the Trans Mountain Pipeline Expansion project and the Coastal Gas Link pipeline.

EDC said in an email it offers financial services like loans, equity and insurance to the oil and gas industry — not subsidies."

Folks, ignore the frauds, they are intentionally misleading you. The inevitable result of being foolish enough to believe the frauds: much higher expenses and blackouts.

From the CBC article:

A new report concludes that the federal government dropped close to $18 billion in subsidies and other forms of financial support on the fossil fuel industry last year 

 

Thank you for verifying that the CBC article was factual and not fraudulent.

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4 hours ago, deicer said:

However, it hasn't. That's the point.

 

Without product the refinery would not be built, however considering the time to build a pipeline both could be finished at the same time. There is of course a refinery project here in Alberta.  Nwr sturgeon

 

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Oil could hit $100 this winter and spur global economic crisis: Bank of America

The global energy crunch could help propel oil prices above US$100 a barrel for the first time since 2014 and spur a global economic crisis, according to Bank of America.

Natural gas prices have already surged to almost double that level in oil equivalent terms, and BofA says a spike in demand for diesel could push crude into similar territory. With monetary and fiscal policy stretched to the limit and energy costs rising as a share of economic output, higher oil prices could in turn create a macro crisis, the bank said Friday in a note.

The boost to crude would be driven by three factors: gas-to-oil switching as a result of high gas prices, a jump in crude consumption over a cold winter and higher aviation demand as the U.S. reopens its borders.

“If all these factors come together, oil prices could spike and lead to a second round of inflationary pressures around the world,” analysts including Francisco Blanch wrote in the note. “Put differently, we may just be one storm away from the next macro hurricane.”

Diesel prices could climb above US$120 a barrel, the bank said, with stockpiles falling as refiners prioritized the production of gasoline in recent months. Other oil-based fuels used in heating are already seeing an uplift, with U.S. propane prices at their highest since 2014.

As well as the cooler weather, BofA also said that underinvestment in commodities due to poor returns is also set to fuel higher oil prices in the longer-term.

“A multiyear run up in crude oil prices is now in the cards,” the bank said.

https://financialpost.com/commodities/energy/oil-gas/oil-may-hit-100-this-winter-and-spur-economic-crisis-bofa-says?utm_medium=Social&utm_source=Facebook&fbclid=IwAR0dLZDG05q5eVlLPh3llrYQhp25gcoT3IWbetC2DispEFR0zgAsplaUx6Y#Echobox=1633096009

 

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The perfect storm will occur when oil prices spike and Michigan wins its court battle to shutdown Line 5…..choking off southern Ontario of petroleum products and causing more damage to the economy still struggling from the pandemic…..but it’s ok…somebody has our backs from day one.

 

 

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Could be even worse than you think.  Buckle up!

https://www.bnnbloomberg.ca/someone-is-betting-that-oil-will-soar-to-a-record-us-200-per-barrel-1.1659692

Someone is betting that oil will soar to a record US$200 per barrel

Brent US$200 calls for December 2022, options contracts that would profit a buyer from a rally toward that level, traded 1,300 times on Wednesday. While the contracts don’t expire until October next year, they could profit from any sharp spike in prices this winter or next summer.

In a market where a single cargo of crude would currently fetch about US$160 million, the US$130,000 wager on oil reaching an all-time high is tiny. However, it reflects the fact that a growing number of options traders are betting that an energy crunch this winter may see prices rip higher.

 

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Alberta pipelines are bad but foreign oil is fine? 

Artificial barriers to Canada’s crude oil trade can have unintended consequences, including higher foreign oil imports

In one of the great ironies of modern Canadian life, a country with among the world’s largest oil reserves, both offshore and on the prairies, has imported $488 billion in foreign oil since 1988.

Break down that $488 billion and some interesting patterns emerge. Most Canadians probably wouldn’t guess that the province with the most oil imports is also the one whose pundits and politicians are most reflexively opposed to oil extraction and pipelines — Quebec. Quebec has imported over $228 billion in foreign oil since 1988 — far more than any other province.

 

It’s not that most Quebecers necessarily prefer foreign to Canadian oil. A 2020 Ipsos poll from the Montreal Economic Institute showed that 50 per cent of Quebec respondents wanted the province to develop its own oil industry. When asked where they’d prefer to see their oil imported from, 71 per cent said Western Canada.

New Brunswick is the next largest importer with nearly $136 billion in foreign purchases between 1988 and 2020. In part, that can be explained by Saudi Arabian crude shipped into the port of Saint John and the Irving Oil refinery there.

As to where the foreign oil flowing into Canada came from, it depends on the decade examined. Across all the years for which we could track imports (1988-2020) the biggest suppliers of oil to Canada have been the United States (nearly $95 billion), Norway ($79 billion) and the United Kingdom (nearly $63 billion). Rounding out the top five are Algeria (over $58 billion) and Saudi Arabia (over $44 billion).

To focus more recently, if you reduce the analysis to just 2010-2020, the United States is still Canada’s top oil supplier at over $84 billion. In fact, most U.S. oil imports flowed into Canada in that decade, with only roughly $10 billion before 2010. That’s due to a mid-decade change in the U.S. policy that for decades banned most oil exports.

Next up at number two is Saudi Arabia, which sent over $26 billion worth of oil to Canada between 2010 and 2020. Algeria was third at over $20 billion, followed by Norway at over $17 billion and Nigeria at over $12 billion.

Averaged across the country, in 2016, the last year for which census consumption data are available, each Canadian household in effect imported $1,021 in foreign oil. Separate Quebec out, however, and the average Quebec household in effect imported $1,576 in foreign oil that same year.

To put 2010-2020 oil imports in perspective, as Canadians were importing over $26 billion in foreign oil from Saudi Arabia over that decade, they were also buying $4.2 billion worth of coffee from Brazil and Colombia and $17.0 billion in fruits, nuts and vegetables from Mexico. That’s $21.2 billion in total in coffee, fruits, nuts and vegetables from those countries, or roughly $5 billion less than what we spent on oil from Saudi Arabia.

A number of factors explain Canada’s the level and pattern of foreign crude oil imports. Eastern and central Canada’s proximity to U.S. oil producers is one factor; the type of oil a refinery processes and ongoing pipeline constraints are others. Given such complexities and the need for open markets and flexibility of supply, it would be a mistake to advocate protectionist measures, which is not what we’re doing. We’re simply providing a reminder that artificial barriers to Canada’s crude oil trade —anti-oil and gas activism and regulations and laws designed to thwart resource development — can have unintended consequences, including higher foreign oil imports, sometimes from unsavoury places.

https://financialpost.com/opinion/opinion-alberta-pipelines-are-bad-but-foreign-oil-is-fine?utm_term=Autofeed&utm_medium=Social&utm_source=Facebook&fbclid=IwAR16F71I6hStXqLcC3DcpuZ_fIeNloKSqYUbc2vKI54u33YbkxSWa3IKtyQ#Echobox=1633431445

 

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This is how the game is played.

https://www.bnnbloomberg.ca/after-breakneck-60-surge-gas-tanks-on-supply-pledge-from-putin-1.1662406

After breakneck 60% surge, gas tanks on supply pledge from Putin

Gas prices fluctuated wildly on Wednesday -- surging a staggering 60 per cent over just two days in Europe before sliding fast after Russia’s President Vladimir Putin said the country is ready to help stabilize global energy markets.

https://www.bnnbloomberg.ca/oil-extends-declines-after-bigger-than-expected-u-s-supply-rise-1.1662331

Oil extends declines after bigger-than-expected U.S. supply rise

Oil extended losses after a U.S. government report showed crude stockpiles rose by more than expected and after Russia signaled it would help ease a growing natural gas crisis. 

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Major petrochemical investment announced in Alberta

Dow Chemical Company says it plans to more than triple the size of its existing plant in Alberta’s industrial heartland and make it produce net-zero carbon emissions.

Dow Inc. says it has plans to expand and decarbonize its petrochemicals site at Fort Saskatchewan, Alta.

70c8fc80

The U.S.-based chemical company says it will build a net-zero carbon emissions ethylene and derivatives complex at the site. It says it will be the first facility of its kind in the world.

Dow says the project would more than triple Dow’s ethylene and polyethylene capacity from the Fort Saskatchewan site. It will also retrofit the site’s existing assets to net-zero carbon emissions.

Alberta initiative aimed at advancing net-zero energy technology – Jun 23, 2021

The new facility will convert cracker off-gas into hydrogen as a clean fuel for use in petrochemical production. Carbon dioxide will be captured on-site to be transported and stored by adjacent third-party infrastructure.

The company has not disclosed a total investment figure for the project, which is dependent on obtaining board and regulatory approvals.

Dow’s existing Fort Saskatchewan site employs approximately 1,200 people. The company says the new facility could be fully operational by 2030.

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22 minutes ago, Kargokings said:

Major petrochemical investment announced in Alberta

Dow Chemical Company says it plans to more than triple the size of its existing plant in Alberta’s industrial heartland and make it produce net-zero carbon emissions.

Dow Inc. says it has plans to expand and decarbonize its petrochemicals site at Fort Saskatchewan, Alta.

70c8fc80

The U.S.-based chemical company says it will build a net-zero carbon emissions ethylene and derivatives complex at the site. It says it will be the first facility of its kind in the world.

Dow says the project would more than triple Dow’s ethylene and polyethylene capacity from the Fort Saskatchewan site. It will also retrofit the site’s existing assets to net-zero carbon emissions.

Alberta initiative aimed at advancing net-zero energy technology – Jun 23, 2021

The new facility will convert cracker off-gas into hydrogen as a clean fuel for use in petrochemical production. Carbon dioxide will be captured on-site to be transported and stored by adjacent third-party infrastructure.

The company has not disclosed a total investment figure for the project, which is dependent on obtaining board and regulatory approvals.

Dow’s existing Fort Saskatchewan site employs approximately 1,200 people. The company says the new facility could be fully operational by 2030.

One has to question why they would move the production to Canada.

Could this be one of the reasons?  The regulations in the U.S. are changing and tightening so is Dow turning Fort Saskatchewan into the next Bhopal?

https://cen.acs.org/environment/pollution/US-EPA-aims-crack-down-makers-ethylene-oxide-emissions/97/web/2019/11

US EPA aims to crack down on chemical makers’ ethylene oxide emissions

https://www.epa.gov/sites/default/files/2016-09/documents/ethylene-oxide.pdf

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30 minutes ago, deicer said:

One has to question why they would move the production to Canada.

Could this be one of the reasons?  The regulations in the U.S. are changing and tightening so is Dow turning Fort Saskatchewan into the next Bhopal?

https://cen.acs.org/environment/pollution/US-EPA-aims-crack-down-makers-ethylene-oxide-emissions/97/web/2019/11

US EPA aims to crack down on chemical makers’ ethylene oxide emissions

https://www.epa.gov/sites/default/files/2016-09/documents/ethylene-oxide.pdf

You are definitely a half empty person. I also note the articles you quote are from 2016 and 2019.  Are they still current.   Since you have time to find such articles, how about a comparison of current emission standards between the US and Canada?

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