Canada was the only free-country supplier of foreign crude oil to the U.S. between 1993 and 2020
By Mark Milke and Lennie Kaplan Canadian Energy Centre Imagine you’re in Germany and wonder if it’s a good idea to rely so heavily on natural gas imports from Russia, where the governing regime is accused by German politicians of killing journalists and the attempted murder of Russian opposition leader Alexei Navalny. German Chancellor Angela…
To attract the investment required to develop resources, mitigating the risks of policy uncertainly needs to be a top priority
By Jairo Yunis and Elmira Aliakbari The Fraser Institute The COVID recession has hurt Canada’s natural resources sector, with supply disruptions, commodity price declines and greater uncertainty regarding future demand. Not surprisingly, capital investment in the Canadian mining industry has dropped to its lowest level since 2009. Of course, business investment should be a key…
But how long will the bull run last?
With the Brent crude oil price touching $65 last week, markets have entered the hot zone. Inclement weather, the resultant rising demand for heating, a dip in United States output and the unilateral Saudi output cut all helped to tighten the markets, contributing to the bull run. Parts of the U.S. have been in a…
By every measure, Canada is a beacon of civil, political and economic rights
By Mark Milke and Lennie Kaplan Canadian Energy Centre Over the past two years, three insurance companies from Europe – Axa, Zurich and Swiss Re – announced plans to stop insuring Canadian oil sands projects, and reduce or entirely eliminate investments in the oil and gas sector. The reason offered is the standard refrain: assumed…
Some observers see prices moving even higher as refiners increase processing rates to meet rising product demand
Oil extended its longest winning streak in two years last week. Crude oil prices climbed more than nine per cent, as the Organization of Petroleum Exporting Countries and its allies in OPEC+ curbed supplies, depleting global oil inventories. A United States government report also indicated that U.S. domestic oil stockpiles have fallen by 6.6 million…
More than 70 years of Alberta prosperity could be in jeopardy. And the continued fixation and dependence on fossil fuels could bring disaster
Lack of diversification is a risky invitation to investment disaster. Very few institutional, corporate or individual investors would put their total net worth into one sector. Yet that’s just what Alberta, Newfoundland and Labrador, and Saskatchewan have done. The economies of these provinces are heavily dependent on the fortunes of the petroleum industry. Corporate and…
Crude oil markets firmed up in the last week to levels not seen in almost a year. Does that indicate a real change in direction or is it just a passing phase? In sharp contrast to its January meeting, the virtual ministerial meeting of the Organization of Petroleum Exporting Countries and its allies in OPEC+…
With the COVID-19 recession and the expansion of Chinese influence, it’s urgent that Canada take the initiative and position itself in new markets
In November, China and 14 Asia-Pacific countries including Japan and South Korea signed a free-trade deal covering 2.2 billion people and nearly 30 per cent of international trade. This Regional Comprehensive Economic Partnership shows that the Pacific region continues to reinforce its place as the world’s leading trade hub. Canada and, more precisely, the Prairie…
It is a mistake to think Canada can thrive without the export wealth generated by the energy sector
By Mark Milke and Lennie Kaplan Canadian Energy Centre You may have heard the persistent worldwide narrative that oil and natural gas are dead, or soon will be, and can easily be replaced with other forms of energy. The latter claim is simply false. Read the work of energy transition expert Vaclav Smil, professor of…
Even if the vaccines remain effective against the new COVID-19 mutants, a true crude oil market rebound is still a long shot
Strong headwinds continue to disrupt crude oil markets in the new year. In 2020, COVID-19 triggered demand destruction, with some insisting that global oil demand may have already peaked. Lifestyles changed – apparently forever. Working from home became the new norm, commuting to the workplace became extinct and flying became less prevalent. All these factors…