Almost ten years ago, the oil sector of Canada was growing at a great pace that as per the predictions, it could have become the energy superpower, globally.
But because of the chain of the missteps that were taken politically along with the formidable environmental activism there has been the creation of a system which is dysfunctional.
This dysfunctional system requires the government which is OPEC style to intervene so as to move the oil to the market.
Canada is the fourth largest producer of oil in the world, producing about 4.9 million barrels on a daily basis.
The countries ahead of Canada in this are the United States, Saudi Arabia as well as Russia. However, the fourth largest manufacturer of oil in the world has to now nationalize a pipeline.
Moreover the province of Alberta as of now is now exploring the options of purchasing trains so as to handle a glut of oil which as of now is sitting in storage.
The crisis of Canada actually coincides with that of the big producers who are now taking the market share far off the members of OPEC which is mostly clustered in the Middle East.
The demand of oil globally in the year 2019 has been expected to be surpassing the 100 million barrels per day.
Because of the escalating demand from developing countries like China, India and others, the United States has increased the exports to record highs.
But under the two governments, Ottawa has failed drastically so as to effectively counter the environmental activists’ strategies of attacking the heart of the oil sector by choking the pipelines which are its arteries.
Almost twice the amount of crude that is normally used to produce diesel, gasoline as well as jet fuel by the Western Canadian amounting to 35 million barrels is now stuck in the storage.
Source: Reuters, Business Insider
