Canadas oil sands! Canada has become an important player in the oil industry today. But its not an easy path to deal with the flourishing oil market in Canada. The climate change issue is a main obstacle in the path of oil industry expansion. It was consistently evident that Canada may not fulfill the target proposed in climate change talks. Though oil sands are a rich source of oil, consisting of heavy oil mixed with clay, they do cause carbon pollution. These oil sands can be mainly found in the Alberta province of Canada. Canada claims that Alberta oil sands contain 98 percentage of estimated oil reserves of it. The oil industry lobbies are heavily lobbying for the production of these estimated reserves. They will generate employment and can bring in money in the form of forex reserves in their home country. Ottawa is eyeing huge market in America. Ottawa is in the talks with Washington to convince them to purchase oil derived from oil sands. The US Military is one of the potential buyer of oil. Several departments of Federal government too are purchasers. An important thing to note here is Canadian diplomats are reaching out to US companies such as Exxon Mobil, Chevron etc mainly to tell them to convince Federal government to remove some hurdles in the policy towards Canada. There are environmental hazards involved in oil sands. People living in nearby oil sands are likely to prone to cancer. But the oil lobby is so strong that it is raising voice against people who do not want them to use these oil sands for oil production. They are basically environmentalists. For the time being health problems arising out of oil sands are side lined, and the Canadian government is keen on going ahead with oil industry lobbyists. If Canada continues to grow in oil production, oil consumer countries will turn to Canada. China is in talks with Canada, and will purchase oil from Canada. This may shift the Geopolitics of oil, as Western countries are posing challenge to Middle Eastern countries. America too has become oil producer, as in Alaska state oil resources have been found in a large scale. It seems that North America will be the absolute gainer in energy Geopolitics.
Posted on: Thu, 25 Dec 2014 15:34:45 +0000
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