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All Canada to benefit from oil sands development: study
by Staff Writers
Ottawa (AFP) Oct 24, 2012


An influential Canadian business association on Wednesday sought to quell domestic objections over the development of Alberta's oil sands by releasing a study showing country-wide economic benefits.

At an estimated 175 billion barrels, the oil sands represent the third largest oil reserve in the world and output is forecast to triple over the coming decade, which would make Canada one of the biggest energy producers in the world.

But many Canadians object to the high pollution and environmental risks associated with exploiting the oil sands, including possible pipeline spills and greenhouse gas emissions linked to global warming.

They largely see Alberta as benefiting from an economic boom while all of Canada is tarnished by international condemnation of the sector.

The Conference Board of Canada said its study indicates that nearly a third of the economic benefits of oil sands investment between 2012 and 2035 will occur in provinces other than Alberta.

And the Can$364 billion (US$366 billion) to be pumped into developing the gooey resource over the next 25 years could provide a healthy boost to a number of sectors that supply the oil sands, to government coffers and to others, it said.

While conventional crude oil is pumped from the ground, oil sands must be mined and bitumen separated from the sand and water, then upgraded and refined.

Opponents say oil sands companies create toxic waste ponds so large they are visible from space and that seep into groundwater. They say oil sands production also releases three to five times more carbon emissions than conventional oil production.

Canada's main opposition party has also suggested that strong foreign demand for Canadian oil is pushing up the currency value, making it harder for Canadian goods exporters to compete internationally.

The Conference Board's report, "Fuel for Thought: The Economic Benefit of Oil Sands Investment for Canada's Regions," was presented at the National Buyer/Seller Forum in Edmonton.

It also says Ontario will see a boost in manufacturing while British Columbia can expect an increase in sales of paper and wood products, for example, to supply the oil sands sector.

Manitoba and Saskatchewan provinces meanwhile will see a spike in demand for metal tanks, steel pipes and tubes, and a cluster of small Atlantic coast provinces will see increased demand for ornamental and architectural metal products, construction machinery, and tires.

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Oil prices rebound on upbeat Chinese manufacturing data
London (AFP) Oct 24, 2012
Oil prices rebounded slightly on Wednesday, with sentiment boosted by upbeat data from top global energy consumer China, ahead of new economic figures from the United States. Brent North Sea crude for delivery in December rose 49 cents to $108.74 a barrel in early afternoon deals in London. New York's main contract, light sweet crude for December, increased 19 cents to $86.86 a barrel. ... read more


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