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A decade ago, Canada’s oil sector was growing so fast it was predicted to become a global energy superpower, but a series of political missteps and formidable environmental activism has created a dysfunctional system requiring OPEC-style government intervention to move its oil to market. Canada produces 4.9 million barrels per day (bpd), more than any country other than the United States, Saudi Arabia and Russia, but the world’s fourth largest producer has had to nationalize a pipeline and the province of Alberta is exploring buying trains to handle a glut of oil sitting in storage. Canada’s crisis coincides with big producers taking market share away from OPEC members, mostly clustered in the Middle East. Global oil demand is expected to surpass 100 million bpd in 2019. The United States has driven exports to record highs on growing demand from China, India and other developing countries. But Ottawa has failed under two governments to effectively counter the strategy of environmental activists to attack the oil sector’s heart by choking its arteries – pipelines. Roughly 35 million barrels, twice the normal amount, of Western Canadian crude used to produce diesel, gasoline and jet fuel is stuck in storage. The energy sector […]
