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Oil sands battle between Canada and EU |
29 Nov 2011 11:43 #63039
by The Captain
Canada is now one of world's energy superpowers.
Over the past two decades, changes in technology and the rising cost of oil have left it with so much recoverable oil in the sands, rocks and clay of the province of Alberta that it is now believed to hold the third largest reserves on earth - after Saudi Arabia and Venezuela.
But most of that is so far un-tapped, with Canada accounting for little over 4% of global oil production in 2010 according to BP's annual statistical review.
To increase that share it must gain global acceptance of the heavy, sticky and, some say, more polluting oil it has found.
For Canada's government, the world has no choice - despite its climatic consequences.
"You can turn off your lights and freeze in the dark, the alternative is to use the energy, which of course you are using, everybody is using," says Joe Oliver, Canada's minister for natural resources.
Export problems
Carbon cost
Ultimately, the fate of oil from Alberta's sands is intricately linked to the climate change negotiations on the other side of the planet.
If leaders eventually agree on a global cost for carbon dioxide emissions it could make extracting oil from sand simply uneconomic.
Piping the oil out of Canada could increase the world's oil supply Instead, investment may go into alternative forms of energy and investors in oil sands may lose out.
But until then, for Canada, it is simply a question of supply and demand.
"If the world doesn't want our oil, it doesn't have to buy our oil," says Mr Oliver.
Much of the world may want to buy it - but Canada is having trouble getting it to them
Over the past two decades, changes in technology and the rising cost of oil have left it with so much recoverable oil in the sands, rocks and clay of the province of Alberta that it is now believed to hold the third largest reserves on earth - after Saudi Arabia and Venezuela.
But most of that is so far un-tapped, with Canada accounting for little over 4% of global oil production in 2010 according to BP's annual statistical review.
To increase that share it must gain global acceptance of the heavy, sticky and, some say, more polluting oil it has found.
For Canada's government, the world has no choice - despite its climatic consequences.
"You can turn off your lights and freeze in the dark, the alternative is to use the energy, which of course you are using, everybody is using," says Joe Oliver, Canada's minister for natural resources.
Export problems
Carbon cost
Ultimately, the fate of oil from Alberta's sands is intricately linked to the climate change negotiations on the other side of the planet.
If leaders eventually agree on a global cost for carbon dioxide emissions it could make extracting oil from sand simply uneconomic.
But until then, for Canada, it is simply a question of supply and demand.
"If the world doesn't want our oil, it doesn't have to buy our oil," says Mr Oliver.
Much of the world may want to buy it - but Canada is having trouble getting it to them
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