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The future lies beyond oil and gas dependence

15 0 142
12.01.2019

Change is coming to Canada, and western Canada in particular. The challenge now is to rise to the occasion and move ahead and not dwell on the past.

Western Canada is in crisis because the hydrocarbon economy that has been a golden goose for Alberta, northeast British Columbia and parts of Saskatchewan is landlocked and a sunset resource.

In the past, Canada had one customer for its oil and gas — the United States. Now the U.S. has become self-sufficient in oil through new technologies such as fracking and new fields such as the Williston basin in North Dakota.

Because we are a captive market and the Americans don’t need our oil, we are at the mercy of American pricing. The Canadian oil industry is witnessing a steep drop in the price of crude oil. While the American price for a barrel of benchmark west Texas crude is around $50 a barrel, the Canadian equivalent is around $20. A barrel of oilsands crude is around $14. Heavy crude at Lloydminster is worth about $10 per barrel. Both heavy oil and oilsands crude are now worth less than the cost of........

© Saskatoon StarPhoenix