Today Bloomberg’s Michael Bellusci wrote an article explaining that Canadian oil and gas companies are in deep trouble. Here is an excerpt:
Canada’s Energy Industry Faces ‘Extinction’ Without M&A, BMO Says
On the same day, Global News reported:
Feds to spend $280k to study why Canada’s oil and gas sector is falling behind
The federal government plans to spend up to $280,000 for a new study on Canada’s competitiveness in the oil and gas industry as investment lags and the United States offers new incentives for companies to move south…
Source: globalnews.ca/news/4123026/oil-and-gas-canada-falling-behind-study/
In general terms the issue is that with low oil prices, oil companies see better places in the world to put their money than Canada. Oil & Gas “activists” will initially claim a victory here because they have had some impact on making it difficult to get Canadian Oil and Gas to both international and domestic markets.
Put simply, until we reduce DEMAND for oil, you will want it produced in “western” democracies like Canada & the United States:
Canada has to IMPORT billions of liters of oil and gas products because it lacks the pipeline infrastructure to get Alberta’s cleanly produced and heavily monitored oil and gas into the large population centers of Ontario and Quebec. No-one wants heavy industry or major infrastructure like highways, pipelines and powerlines in their back yard, but we need that infrastructure to live in the modern world.
Do you really think that producing oil in Algeria and transporting it to Canada on the other side of globe in tankers and then using trains to get the oil products to the cities like Toronto and Montreal that need them, is cleaner than piping Alberta oil?
‘Pipeline activists’ are generally ill-informed, naive and are going to destroy the environment so the next time you are tempted to support them keep in mind the grave damage they are doing to the environmental big picture.
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