More Canadian Oil Is Good for Our Families

More Canadian Oil Is Good for Our Families

Canada oil imports q1-q3 2021

As the world's third-largest reserve holder and fourth-largest producer and exporter, Canada's reliance on foreign oil is shockingly significant.

Between 1988 and 2020, Canada imported approximately $488 billion of foreign oil. According to Statistics Canada, we've imported over $23 billion from Saudi Arabia and nearly $10 billion from Nigeria over the past decade.

And, in just the first three quarters of 2021 alone, we bought roughly $10.6 billion of crude oil from foreign sources including Saudi Arabia, Nigeria and some other countries but the lion's share from the United States.

Why Not Use More Canadian Oil?

Canada oil imports saudi arabian oil 2012-2021

With the massive benefits provided to Canadian governments by the oil and gas industry, it makes you wonder why we don't wean ourselves off of foreign oil altogether.

Research by the Canadian Energy Centre found that between 2000 and 2019, the gross contribution to federal, provincial, and municipal governments exclusively from Canada's oil and gas sector was $504.9 billion, an average of $25.2 billion per year, which the CEC deems as "… a conservative estimate of the sector's contribution to government revenues."

More sustainably produced Canadian oil being used domestically seems like a no-brainer given the economic benefits it would create for governments via the increase in collected royalties and taxes that would come with, no doubt. Remember, those revenues pay for things such as hospitals, schools and train stations, and the staff that work in them.

Canada's Social and Governance Record

It's clear that more Canadian oil on domestic markets would be a good thing for Canadian families. And the same would be true if we were to increase our share of production exported to global markets, where we could potentially displace crude oil from nations with weaker protections for human rights.

Of the world's top 20 oil producers, Canada ranks second on both social and governance. To add, of the world's top 10 oil exporters, Canada ranks number one on the following indices:

Global Demand & Investment

Canada oil imports nigerian oil 2012-2021

Canada could use more Canadian oil in import-heavy provinces like New Brunswick, Ontario and Quebec, but so could the world.

According to several recent projections, demand for oil is projected to grow past record highs seen in 2019, with the U.S. Energy Information Administration (EIA) expecting demand to continue to grow through 2050 based on the way the world is now. Both Goldman Sachs and BP have said recently that global oil demand is already back on par with the 100 million barrels per day rate of consumption seen before the pandemic.

The world will need a lot more oil in the coming years, with hundreds of billions in new investment required each year just to maintain supply and prevent future shortages.

deloitte oil and gas investment required globally each year to prevent supply shortages

Moody's estimates that global annual upstream spending needs to increase by as much as 54 per cent to $542 billion annually of the oil market is to avert the next supply shortage shock. The International Energy Agency's World Energy Outlook 2020 found that anywhere from $12-$17 trillion of additional investment is required in upstream oil and gas operations through 2050 to keep up with global demand.

Today, Brazil, Russia, Saudi Arabia, and other major oil producers are investing tens, if not hundreds of billions of dollars to continue the expansion of their own sectors – nations, compared to Canada, perform much poorer on all the indices above.

Join Us Today!

There is a soft-spoken majority of people in Canada that support our oil and gas sector. Learn more about why the world needs more Canadian oil and gas by joining us at Twitter, Instagram and Facebook today. Hope to see you there!