Beyond-oil investments to drive future growth

The Canadian economy is one of the richest in the world. This is reflected by the fact that Canada is a member of G8. The strength of the Canadian economy is underlined by its low levels of corruption, high level of government and private sector investment in industries. The Canadian economy’s fortunes are bolstered by the North American Free Trade Agreement (NAFTA), which allows and encourages trade between Canada, and the US, which is the world´s biggest economy. Canada is also very rich in natural resources and minerals, including wood, fishing, gold, uranium and nickel. The export of minerals is a major source of income for the Canadian economy. Tourism is another major income generator. Canadians enjoy one of the highest standards of living anywhere. Cities such as Vancouver and Monteal have been voted on many occasions as good cities to live, whilst the UN has voted Canada as the number two country with the highest standard of living.

The manufacturing sector is a major player. Large US automotive manufacturing companies in Canada provide jobs and export income. Meanwhile Canadian manufacturing companies such as Bombardier are world class producers of trains and aircraft. Canada is also at the forefront of high-tech industry. Many foreign companies have established R&D facilities in Canada. However Canada itself has well knows high tech companies such as Nortell Networks and Correll graphic software. Canada is also a major destination for foreign investment. The United States is Canada's largest foreign investor. Other countries such as HK and the UK are major investors in the Canadian market. The ease to invest in Canada is supplemented by the fact that Canada is the 14th least corrupt country in the world. By the end of World War II, Canada was importing 90% ot its oil from the US. But in 1947, the situation changed drastically, when a company named Imperial Oil discovered an enormous oil field near the Edmonton suburb of Leduc.  short time after that, other big oil fields in Alberta were discovered which together with oil from the Canadian prairies produced a huge surplus of oil. Soon the first pipelines were built, but one of the unusual feature of these pipelines was that they did more to improve the energy security of the United States than Canada. This was due to Canada's insistance that US buys the biggest chunk of its oil imports.During the 70s and 80s, Canada had two different oil prices: one domestic price and one international price. Consequently the Canadians escaped from the price increase during the oil crises.

But the Mulroney government abolished the domestic price policy with the National Energy Program in 1985 which reduced the authority of the National Energy Board and allowed to US oil companies to invest in the country. With the North American Free Trade Agreement (NAFTA) in 1989, the situation get worst: it removed tariffs which Canada imposed on its oil and gas sales to the US.

Since the signing Canada’s oil and gas exports to the United States have been nearly doubled and in 2004 Canada became the biggest foreign oil supplier to the US. Canada now exceeds oil exporters from the Persian Gulf countries.

In 1991, Canadian Conservatives passed legislation allowing privatization in the oil sector as interest in having a national oil company declined the following years. As the energy policy as well as the climate protection and energy saving are under control of each provinces, the central Canadian government part of its power in the oil and gas policy.

Beyond Oil Summary

The Canadian government's main energy conservation program is spelled under its “ecoENERGY” which was established in April 2007.

It entails government aid for energy efficient new buildings, retrofit of older constructions and for energy production from renewable resources. The central government also wants to invest in certain projects which support equal-zero-emission coal-fired power stations and eco-friendly automobile technologies. Such areas are open to foreign investment and intervention.

As a net oil exporter Canada and its oil business will profit from the increasing oil prices. Therefore it is expected that Canadian oil companies will expand their oil production in the next years. Although the central government has some projects to support the national energy efficiency, it does not have sufficient power nor motivation to intervene in the oil sector business. Despite this, Canada is one of the most prepared countries for the Beyond Oil age. This is due to the existing size of the non oil sector, and the high level of income which it generates for Canada. The high monetary quality of Canada’s non oil exports are another factor which will support Canada’s progress in the Beyond Oil age.