Why Canada’s Oil Future isn’t Going South

Canadian Natural Resources Minister Joe Oliver said last week it was time to add more diversity to an energy sector that relies almost exclusively on the United States. New drilling technologies for shale have translated to major gains in U.S. oil and natural gas production, which itself translates to a U.S. economy that relies less […]

‘Hard Sell?’ Canada Doubles PR Budget to Promote Tar Sands in U.S.

Canada is, according to the U.S. Energy Administration, the leading source of United States crude oil imports, which average 9.033 million barrels per day (mbpd), with Canada sending 2.666 mbpd southwards to the U.S. Mexico is second with 1.319 mbpd and Saudi Arabia third with 1.107 mbpd. The EIA notes, “Canada is one of the world’s five largest […]

Has House Price Deflation Begun in Canada?

Yesterday, the Teranet-National Bank National Composite House Price Index for Canada was released. It showed that 12-month home price inflation in Canada was down to 2.0%, the lowest level since November 2009. And given the huge amount of talk in Canada about a potential housing bubble, there is a worry that this is the beginning of a housing bust. You […]

Oil Majors Support CO2 Tax in Canada

Exxon Mobil Corp. (NYSE: XOM), France’s Total SA and Cenovus Energy Inc. (CVE) are all actually seeking the imposition of a tax on carbon dioxide emissions in Canada. It’s not a change of heart, it’s about the bottom line. Here’s the deal: These companies are planning to convert billions of barrels of Canadian oils sands […]

Canada Considering Nuclear Reactors in Alberta Tar Sands Fields

Like them or hate them, Alberta, Canada’s tar sands deposits of bitumen or extremely heavy crude oil, are the world’s largest. The province’s resources include the Athabasca, Peace River and Cold Lake deposits in the McMurray Formation, which consist of a mixture of crude bitumen, a semi-solid form of crude oil, admixed with silica sand, […]

Why Canadian Crude Is the Cheapest in the World

Canadian crude prices are at their lowest levels against Brent-priced crude in 10 months, reaching a new market low on Friday and trading last week at under $50/barrel. This is less than half the price of international Brent-priced crude. Why? •    Refining capacity isn’t evolving fast enough •    Supply is increasing •    Pipeline capacity is […]

Canada: Of Resource Investment and ‘Net Benefit’s

Two important pieces of news for the Canadian resource sector were announced today, both reference in some way the “net benefit” clause for investment in Canada, one at a national level (Nexen-CNOOC), the other at a provincial (National Gateway pipeline review), both important to Canadian and global resource supply chains. First, the proposed takeover of Nexen […]

North American Competitiveness

Last week I attended a conference “Made in North America: Competitiveness, Supply Chain, and Transportation in the NAFTA Region,” which was part of World Trade Week’s events here in New York. From the interesting panels there emerged three main points, one positive and two less so. The positive outlook is that macroeconomic and global winds […]