Do Canadians Want To Stay In The Oil Business?
There are a variety of variables. A light tight oil boom in the U.S. adding production in volumes not so long ago thought of as impossible. The changing behavior of OPEC, particularly Saudi Arabia, from price support to market share. Domestic strife or poor government in oil-rich countries like Iraq, Libya, Venezuela or Nigeria. The end of international sanctions against Iran and a slowing economy in China. Canadian oil managers and workers follow the news, adjust their business as required and roll with the punches to the best of their ability.
However, it is becoming increasingly clear there’s a whack of challenges within this country combining to make a bad situation worse. It begs the question: do Canadians want to be in the oil business at all? No is fine. Free country. But those who want Canada to become something other than it is should understand and acknowledge the enormity of the economic hole abandoning the oil industry will leave and how hard it will be to replace this wealth and opportunity.
Canada is the fifth largest hydrocarbon liquids producing jurisdiction in the world, a fact not widely known outside of the ‘patch. Whatever many think Canada should be, this is what we are. The following chart shows the top ten global producers of crude oil, condensate and natural gas liquids.
(Click to enlarge)
While the United States, Saudi Arabia and Russia are clearly the “big dogs,” with production exceeding 10 million barrels per day (mb/d), Canada ranked number five at 4.31 mb/d in June, just behind China (4.5 mb/d) but ahead of Iraq (3.61), United Arab Emirates (3.46), Iran (3.45) and two other countries known to be totally dependent up on oil, Venezuela and Kuwait.
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