US Oil Exports Hit Record High

Canada risks being left behind as American oil production surges

As our government plows ahead with plans to impose a massive new carbon tax, our neighbours to the south are grabbing a bigger share of the oil market.

As reported by CNBC, US shale oil producers exported 7 million barrels of oil last week, a record high. This brings total US oil production to around 9 million barrels a day.

The American government is projecting an increase of 80,000 barrels a day for US shale production in the next month.

At the same time, OPEC is cutting oil production, as the nations of that cartel play a game of chicken in an effort to raise oil prices.

Risk for Canada

Both oil sands and shale oil are more expensive to extract than oil in most OPEC nations. However, national policies have an effect on the profitability of resource extraction as well.

The United States is moving to a lower tax, lower regulation business environment. At the same time Justin Trudeau and the Liberals have implemented more regulations, and are planning to bring in a carbon tax, which will drive up the cost of everything – including resource extraction.

This will put Canada at a severe competitive disadvantage, and could have devastating long-term effects on our oil industry.

The reality is quite clear: We face a more competitive economic environment than ever before. To survive and prosper, Canada must ruthlessly pursue our economic interests. And that means lower taxes, reduced regulations, and the elimination of the carbon tax.

If those steps aren’t taken, the prosperity we have as Canadians could be squandered, and if that happens, our future will be worse than our past.

Spencer Fernando

Photo – Twitter