Is Giving Out Our OIl the Right Solution For US ?
by olipilote on September 10, 2013 - 5:13pm
The article Oil Export: An Overview, written by Lee Tunstall and Jessica Wong informs us about the enormous and precious oil reserve that is Canada to the world, and about the challenges that holding this tittle implies, such as this article's concern: exportation of the resource to the U.S market. It tries to do so by pointing out key economic advantages advanced with petrol exportation to our south neighbours, but also demonstrates other possible alternatives that would be as economically profitable or even more, like the new Chinese demand for our canadian petrol. But would this be ecologically responsible? The authors suggest it may not be and that we would be better off keeping the relation we have with the states as they are now.
This issue can be addressed from 2 perspectives. The first one that states that we should focus our petrol exports to the U.S.A mainly. The second one says we should reduce the commerce we make with the american nation and rather target our attention to new and foreign markets, such as China. If you were to be in favour with the first perspective, arguments on your side would be that many american oil companies are active in Canada, and thus provide a substantial investment in canadian territory. Another advantage of trading with our southern cousin is the political stability of their country, that can be hard to find in other countries such as China. To add to this trading ease is the geographic location of the United States of America, which is fairly close to us. A result of this is low costs of transportation and infrastructure build. Last but not least is the fact that when exporting mainly to only one country, we can control easily and responsibly the amount exported, therefore paying close attention not to export more than we can afford to.
However, some might argue that in order to keep canada's economy booming, we must give less importance to our usual buyer and focus on emerging markets. This is possible because Canada is now able to produce more and can expand its business worldwide. Large asian markets such as China are willing to pay more than what the U.S are now paying in order to have some petrol. Since it is an emerging country that will need petrol to expand itself, we would warrant ourselves a high demand for many years to come.
If I were to be asked from which perspective I would deal with this issue, I would favour the one where we keep on building the good relation we have with our southern neighbours. Beginning exporting to other countries means a whole new series of pipelines, which is cost-heavy. We would also sacrifice environment since production would have to be increased to meet the rising demand. Giving out contracts to other countries means taking them away from the americans, thus resulting in less foreign investment from their part since many of their companies are settled in Canada. Moreover, we don't if the new countries with which we will be doing commerce are likely to stay politically stable, since most of them will be developing countries. This isn't a problem in the U.S. In short, I believe we would sacrifice much more than what there is to gain in finding new allies to whom export our petrol to, and that is socially and economically.