Oil Sands: Canada’s Economic Future?
by Ben Gardiner ~ November 15th, 2012. Filed under: Uncategorized.
Canada is currently the largest oil supplier to the United States and has the third largest oil reserves in the world. A Deloitte partner from Toronto stated that oil sands represent the “economic engine for the country for the foreseeable future” while the Canadian Energy Research Institute estimates a $2.1 trillion benefit to Canada’s economy over the next 25 years.
Despite these optimistic forecasts, Canadian companies have their work cut out for them; uncertainty regarding President Obama’s plan for the construction of the Keystone XL pipeline, environmental concerns, and America’s plan to be energy independent by 2035 leave many challenges for Canada’s heavy oil producers.
The thoughts from my comm 101 sustainability lecture suggest that the free market will act in the best interest of consumers and society, regardless of government regulation. I believe that oil sands producers must make the effort to develop new production techniques which are environmentally conscious and aim to develop cleaner and more sustainable methods of production; interest groups and even local Albertans will simply not let these billion-dollar companies extract petroleum irresponsibly.
As for America’s oil strategy, it is clear to me that President Obama will approve the Keystone pipeline; America’s plan for energy independence is not nearly developed enough to block a flow of heavy oil from Canada; when America finally does become energy independent, Canada will become rich by supplying to the next great oil consumer: China.
Headquarters in Calgary, Alberta for Cenovus Energy, one of Canada’s largest oil sands producers – photo used with permission, S. Gardiner
Read more on the benefits of Alberta’s oil sands: Oilsands investment benefits flow beyond Alberta