Globalization Of Oil In Canada

Improved Essays
Oil is one of most important items in the world. Where you have oil you have money the two correspond with another. The fluctuation on the prices of oil can have dire consequences to the economy of a nation and a province. There is oil in Canada and the government has noticed that, the government has put numerous implications to improve our exportation of oil. With the drop in the price of oil some provinces in Canada like Alberta will have a tough time rebuilding the lost revenue. It is estimated that alberta will lose up to “seven billion dollars” While the drop in oil prices is bad for somethings there are a few benefits that will come. Gas will be cheaper, and that will “save Canadians an estimated 10 billion dollars.” Oil is key component …show more content…
Supply and demand. There isn’t enough demand for oil right now. There is turmoil in china and the demand for oil there is at an all time low. China is the number one consumer of oil in the world, but with an economic slow down there demand for oil was less and less. Europe also a big comsumer of oil has a weakening economy so the demand for oi there is becming less. Another interesting point is more and more fuel-efficient cars are being sold and used in our streets, with more fuel efficient cars people are not filling up as much. The demand for oil is at an all time low. Although there is less demand the supply of oil is plentiful. In north Dakota and Texas a lot of oil has been extracted causing more and more oil to just sit and wait to be exported. In Alberta the oil sands have the third largest amount of oil behind only Saudi Arabia and Venezuela, there is “approximently 166 billion barrals worth of oil. There is also added competion in the oil market as Saudi and Nigerian oil are now competing against the USA and Canada causing the price of oil to drop. Recently in Canada the oil production was suddenly seized as forest fires destroyed the region where the oil sands were located. These played some parts into the drop of oil prices when it comes to the supply portion. When it comes down to it, its simple economics there is too much oil but little demand. While it all looks bad there are some benifets that come with the low oil prices, …show more content…
A trade deficit is caused when we import more than we export a trade deficit. Exporting goods is key to any economy the more we export the more our economy grows. Exporting oil can be beneficial to any economy. Look at Alberta, According to oilsands.alberta.ca “21,500 people were employed in Alberta 's upstream energy sector, which includes oil sands, conventional oil and gas. Royalties from the oil industry in alberta were “3.56 billion. Alberta exports of goods rose by about 50 per cent from 2002 to 2012 to $95 billion, which includes almost $68 billion in energy and oil exports.” The increase of oil exportation in Alberta created more jobs, which means people, can spend money and when people spend money the government takes a portion of it. This is the economic circular flow everything is connected. When there is more exports than imports the economy grows and develops. As oil prices dropped and less demand for oil recently the exportation of oil has become slower. Thus in turn has caused negative consequences for provinces and countries economy’s. In Canada its been noted that we have been major players in oil exportation recently, with the declining price of oil and less demand our GDP will suffer. It is estimated that, “One third of a percentage point will be lost because of the oil prices.” This in cause will cause fluctuation of

Related Documents

  • Decent Essays

    Case Study Henry Inc.

    • 463 Words
    • 2 Pages

    Consumer spending is up, the housing market is increasing, and the demand for oil and energy is high. In addition, Canada is part of the NAFTA and the country is the number one provider of exports…

    • 463 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    If more labour and investment is required to extract resources, an equal amount, or more, is required to meet Canada's increasingly urgent infrastructure needs. Nevertheless, oil and gas extraction accounted for two-thirds of Canada’s capital spending growth and later made up more than one-quarter of the country’s capital spending. Although lowering tariffs, and allowing free-trade can promote international trade and expand towards foreign markets, the trades of goods has been shrinking. With advancements in recent technology, people aren’t able to predict the future of global economic…

    • 898 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In Chinese, we call this situation is “More harm than good”. Canadian economy will also be affected by Quebec separates from Canada peacefully. Oil is the most important industry in Canada, and agricultural is the second important industry. Quebec has fertile agricultural. It products fruits, vegetables.…

    • 669 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    The Alberta oil sands are one of Canada’s largest sources of oil and may be the biggest petroleum deposit anywhere in the world. But the oil sands industry has a lot of environmental impacts. The oil sands are one of the major causes of air pollution in Canada and North America. A sticky mixture called Bitumen (which is also known as tar) doesn’t flow easily like petroleum or crude oil so companies have to resort to surface mining (strip or open pit mining) which is bad for the environment because it removes landscapes, agricultural lands and destroys forests which leads erosion and then when it rains it washes the topsoil into streams which pollutes the water. Another method is injecting steam to get it out of the Earth.…

    • 359 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    The Trudeau Government

    • 1043 Words
    • 5 Pages

    The Trudeau Government anticipates change in the foreign policy. As well as, change for Canada in the international realm. On October 19, 2015 there was a highly contested election in Canada. This election had a significant liberal victory and a high voter turnout. The parliament composition was taken by the new Prime Minister, Justin Trudeau.…

    • 1043 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Globalization has led to countries being dependent on one another. This is because globalization allows for the movement of people, ideas, capital, and products. International trade is an aspect of globalization. International trade gives countries the space to sell their products to different people around the world, it also allows for states to specialize in what they do best. This is the essence of comparative advantage.…

    • 1157 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    A pipeline is like if a vein of your body was carrying illness through you. The bad cell will just multiply and multiply until you get sick, and even when you are sick it gets worse. That is what this pipeline will do to Canada's environment. The government should not approve the building of the pipeline for many important reasons. Clearcutting forests will destroy Canada's naturally beautiful landscape.…

    • 701 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Fracking In Canada

    • 786 Words
    • 4 Pages

    The Guidelines for Canadian Drinking Water Quality must be followed in all of the provinces where hydraulic fracturing takes place and the results shared with the property owners (Gagnon, 2016). Provinces In Canada, a handful of provinces have banned fracking; Quebec, Nova Scotia, and Newfoundland & Labrador, for the main concerns of water contamination, air quality, and the terms of clarification and operation licenses (Gagnon, 2016). While British Columbia, Alberta and Saskatchewan allow drilling of this natural resource with the proper permits and if regulations are followed. (Olive, 2016).…

    • 786 Words
    • 4 Pages
    Improved Essays
  • Brilliant Essays

    Free Trade In Canada

    • 441 Words
    • 2 Pages

    Conclusion Ultimately, the free trade agreement with the United States has not been good for Canada. Canadians have experienced a range of negative impacts and have been made more vulnerable to many problems due to elements of the agreement. In addition to the fact that Canada’s environmental resources are more vulnerable to damage and pollution, the country has also failed to realize the economic objectives upon which the agreement was based. While Canada has enjoyed some benefits, including maintaining its position in international trade, the negative impacts to Canada and its sovereignty greatly outweigh any of these benefits.…

    • 441 Words
    • 2 Pages
    Brilliant Essays
  • Improved Essays

    The rise in prices of petroleum is an effect of the Iranian oil production plummeting so they were not producing enough petroleum to sell at lower prices (Verleger 464). These topics have to do with what President Jimmy Carter said about not wanting everyone in the United States of America depending on foreign countries for these resources during his…

    • 1104 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Issues In Beyond Oil

    • 1075 Words
    • 4 Pages

    The world we live in is changing daily. Fossil fuel consumption has to be reduced, before our planet can begin to repair the damage man has caused. “It is estimated the world uses 87.8 million barrels of crude oil a day” (Friedman 195). “In 2000 it was estimated that the US consumed nearly 20 million barrels of oil a day, which is about 5% more than similar nations” (195). Oil consumption demand is going to increase as long as the supply can meet the demand.…

    • 1075 Words
    • 4 Pages
    Great Essays
  • Great Essays

    Coincidentally, this also aligned with Vladimir Putin’s first term as president. The Russian economy is heavily influenced by the price of oil. This is a situation economists refer to as the “resource curse.” The resource curse is explained as “the tendency of easy resource wealth to prop up inefficient industry, squeeze out manufacturing, and fuel corruption” (Ip 2015). Although Russia does have other major economic resources, such as lumber, steel, and aluminum, 18.2% of the GDP is accounted for from Russian oil and gas, making it the third-most dependent in the world (Ip 2015).…

    • 1637 Words
    • 7 Pages
    Great Essays
  • Improved Essays

    Oil has become so predominate to many nations economy’s that we continue to…

    • 1154 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Due to the oversupply of oil in the recent years, the OPEC, also know as the Organization of Petroleum Exporting Countries, who are in charge of overseeing the world’s oil exports, have reduced supply of oil, to stabilise the costs of oil globally. This leads to increased prices of oil due to the increased demand, causing transport and shipping costs to surge. This surge in price would also reflect in the prices of food as food is shipped around globally, thus imported and exported prices around the world would increase. Thirdly, there is a shortage of farmers globally.…

    • 705 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Oil Research Paper

    • 1145 Words
    • 5 Pages

    Oil (or petroleum) is a very important thing to us. We use it every day. We use a lot of it in just a single day. Our life depends on oil. It may not be the only thing but it is one of the most important.…

    • 1145 Words
    • 5 Pages
    Superior Essays