tritium tritium:
o.k. Einstein.
You think if both Canada and the United States would invest into and build more refineries would we be in this situation.
We have lots of oil and gas, it seems though the prices are greatly effected when we can not refine the raw resource.
Investors in Canada and the US have not invested in refineries for past generation for three reasons:
1. Environmental hurdles have increased significantly. Though not insurmountable, they are formidable.
2. There has been a real concern with feedstock for the refineries. Investing another couple of billion for a plant that may not be able to secure a supply of raw material is a gamble.
3. It hasn't made economic sense up until now. Production increases were realised through refinery expansion and modernisation in the 80s and demand in North America stagnated in the 90s.
I'd like to address the "lots of oil" comment. Alberta's fields are producing approximately 3% less oil every year. This is a pattern consistent with three of the four largest fields in the world which are also in decline. \
The world is currently consuming about 85 million bbls a day which is about as much as we can extract. We have to learn to live within that number. Throw a million cars on the road in China and you need more people riding bikes, downsizing to hybrids or riding public transit in NA to balance the oil equation.