Skip to main content
No. of Recommendations: 0
Canada can currently meet its domestic production and refining needs. It has no desire to build more refineries so its solution is to pipeline raw oil to the Gulf and Pacific coasts. The Gulf coast will process product along side domestic production while the West coast will be tankered to Asia for processing. Estimates that the lack of the XL pipeline will cost Canada about $20 billion a year, you would think that incentive enough to refine locally and feed the center of the country. Lots of jobs if that's your thing plus the minimum of transportation.

As for fracking, it has been around since the 20s for use on traditional reservoirs. It gets a bad rep because it is blamed for a multitude of other sins such as waste water disposal. Shales have long been reconvinced as the source of oil and gas, however it as uneconomical if not impossible to produce them until the appropriate technologies were available. Three come to mind, Extended reach short radius horizontal wells to provide the largest possible exposure to the target. Regional and local understanding of tectonic stress and phased fracking to propagate fracture perpendicular to the borehole and the development of clean proppants to keep fractures open while minimally impacting flow.

These were reserves that were deemed unproducible 20-30 years ago. Similarly, I predict that new reserves will be available as technology moves forward. Considering that up to 50% of the reserves of a traditional reservoir are considered unrecoverable, that may be the next target

But my original argument still stands that production public lands makes no difference to the price of oil or overall jobs. The price of oil drives the exploration market and the development of technologies needed to exploit new discoveries. There are more jobs across the board when the price is high. The reason companies want to explore public lands if the prospect of easy finds and thus more profit to the bottom line

As for people leaving the oil industry, that is a sad truth. Employees are tired of the boom and bust cycle and have been steadily exiting over the years for more stability. One of my sons exited offshore construction last year for the more stable but less challenging commercial equivalent. One of my key reasons for leaving big oil some years back was the day I was told to lay of 80% of my staff some 200 people. Put myself #1 on the list and went to the movies to veg out
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.