Exceptional Benefits of Oil Drilling

• Offshore Drilling Contributes to Economic Success.
• Offshore Drilling Adds Jobs to the Economy.
• Offshore Drilling Creates New Habitats.
• Offshore Drilling Providing a Superior Energy Resource.

Major pros and cons of deepwater oil drilling

• Pro: Offshore drilling allowed to increase oil production.
• Con: The process of oil extraction is more expensive and dangerous than the onshore drilling.
• Con: The environmental damages are still unavoidable.
• Pro: It provides countries with the energy independence.

Oil is an important part of daily life in Canada and all over the world. This powerful source of energy moves us, heats our homes and creates jobs – and it’s a component of many everyday products.

Overview. The responsible development of oil sands is a key driver of Alberta’s and Canada’s economy. It creates jobs and tax revenue for government which support the social programs and capital infrastructure projects we rely on.

Tar sands oil — even the name sounds bad. And it is bad. In fact, oil from tar sands is one of the most destructive, carbon-intensive and toxic fuels on the planet. Producing it releases three times as much greenhouse gas pollution as conventional crude oil does.

Cons

• Enormous GHG emissions.
• Relatively low net energy return compared to other sources.
• Large amounts of water required: roughly 3:1.
• Water pollution.
• Destructive to major boreal forest.
• Widespread habitat destruction, both on land and water.
• Requires expensive and risky pipelines.

“¢ The oil sands have made Canada the Number One foreign supplier of oil to the U.S. This has become a major factor in the close economic partnership shared by the two countries. “¢ The oil sands provide Canada with a relatively secure source of energy.

A strong oil sands sector drives a strong national economy by attracting capital, creating jobs and supporting public services. Local companies in every province supply goods and services to the oil sands—creating jobs, growth and economic opportunity in local communities.

Between 2000 and 2018, the oil and gas sector paid federal and provincial corporate income taxes of over $59.9 billion, or $3.2 billion per year. Of that $59.9 billion, $38.7 billion was paid in federal corporate income taxes and $21.2 billion in provincial corporate income taxes.

The air pollution is also a carcinogen-this increases the risk of cancer to the people living in the area. This is a social problem because the Tar Sands pollution was created by human actions and behaviors, it not only has negative consequences on the earth, but the society itself.

10%

Crude Petroleum

“The biggest reason we import oil is the simple fact that a lot of U.S. production is closer to eastern markets than supplies from western Canada,” says David Layzell, Director, Canadian Energy Systems Analysis Research (CESAR) Initiative. The CERI report points out that western Canada also imports oil products.

Refineries located in, or near, the WCSB refine local domestic oil. In eastern Canada, refineries process less domestic crude and more imports. This is due to higher transportation costs, limited pipeline access to western Canadian domestic oil, and the inability of refineries to process WCSB heavy crude oil.

Canada’s Oil Imports Currently, more than half the oil used in Quebec and Atlantic Canada is imported from foreign sources including the U.S., Saudi Arabia, Russian Federation, United Kingdom, Azerbaijan, Nigeria and Ivory Coast. In 2019, Canada spent $18.9 billion to import foreign oil.

Canada also exports refined petroleum products to the U.S. whether it’s funding for health care, education, or a variety of other important services that give us one of the highest living standards in the world. That’s why it’s so important that we continue building pipelines to export our oil (and gas).

Canadian average domestic heating oil prices 2019-2020 The average domestic heating oil price in Canada reached about 902 Canadian dollars per 1,000 liters in April 2020.

(13 May 2021) Brent crude oil prices will average $62.26 per barrel in 2021 and $60.74 per barrel in 2022 according to the forecast in the most recent Short-Term Energy Outlook from the US Energy Information Administration (EIA).

Oil prices to hit $100 per barrel, expert warns Global demand will outpace supply in 2022 as effective COVID-19 vaccines and OPEC+ supply curbs keep supply and demand out of whack.

In many ways the market is healing, but it’s not fully recovered. Global oil consumption is still down about 5% to 7% from a year ago, Shell’s van Beurden said.

Brent prices averaged above $40/b by June 2020, increasing to $50/b by the end of 2020. Prices rose to $68/b in May 2021 due to rising oil demands as COVID-19 vaccination rates have increased and economic activity has picked up.

Furthermore, global oil demand has continued to exceed supply since the third quarter of 2020, per EIA. For 2022, global oil production is expected to increase to 100.8 mb/d in response to higher demand. The natural oil production decline range therefore equates to an additional 4.0 mb/d to 7.1 mb/d.