Impact Of Oil And Gas Industry On The Economy Of Western Canada Harvard Case Solution & Analysis

INTRODUCTION

1.1.Background

Since the earliest recorded decades, there have been accounts of the natural gas and crude oil seeping to the surface of the earth. The oil was used for multi-purpose. Until the process of refining developed in the 1850s, oil was not used as fuel due to its foul smelling fumes. Canada is known for producing crude oil estimated to be 3.9 mbbl/d (Petroleum_industry_in_Canada, 2017).

Although oil and gas industry in the western Canada seems to be mature. The offshore and arctic resources of the petroleum are mostly in the earlier phase of the exploration and development. In the late 1950s, Canada became anoil and gas producing giant after Russia. The country have been constructing the network of the vast pipeline in 1950s, thus starting to develop the national and international markets in a big way.Upstream revenue of the production totaled $31 billion in the year of 1997, out of which the country received 53% revenues from the sale of the oil. The second reshaping of the oil and gas industry was formulated in the October 1980, when the government has announced National Energy Program in the country.

Furthermore the petroleum monitoring agency was established in 1980 in order to analyze the trend of the ownership, later on it was disbanded in the 1995. Moreover the petroleum revenues has increased from 13% in 1977 to 19% in 1980, 20% in 1983 and in 1986 it has increased to 48%. Since late 1984, the petroleum industry have been transformed when the government was deregulating the prices of the oil and gas. The oil prices was dropped in 1986 in all aroundthe world, the oil prices in the Canada was averaged about 55% (History_of_the_petroleum_industry_in_Canada, 2017).

The rise of the gas and oil industry over the last period has helped the economy of the Canada to grow and the extraction of theoil and gas industry has been the top export earner country by value since 2005.The production of the conventional crude oil was estimated to be 441000 bbls/d, it has been decreased from 2015 due to the lower prices of the crude oil. (OilGas_QuarterlyUpdate_Summer2017, 2017).

Impact Of Oil And Gas Industry On The Economy Of Western Canada Harvard Case Solution & Analysis

The petroleum industry of Canada have arises in parallel with the United States due to the unique geology, geography, settlement pattern and the resources, it has developed in the multiple ways. In the history of the Canada, the evolution of the oil and gas industry is the foremost and key factor to be discussed and it might help in illustrating how Canada became the distinct and different from her neighbor.

Canada is known for supplying reliable and secure crude oil to the international arena, producing crude oil of approximately 3.8 barrels per day in 2014. Canada also holds one of the largest and greatest reserves of the oil across the world which is only surpassed by the Venezuela and Saudi Arabia. In addition to this, Canada also has oil reserves of 171 billion barrels out of which 166.3 billion barrels is holding in the form of the oil stands...............

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Impact Of Oil And Gas Industry On The Economy Of Western Canada

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