Quote:
Originally Posted by Fuzz
I'm saying that's a poor long term strategy, because relying on what is ultimately a dead end resource leaves us unprepared for that day. Nothing wrong with using that income and maximizing it to what is reasonable and balanced, but it shouldn't be what we depend on. If that's the strategy, it's a poor one.
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In spite of the world's attempt to transition away from oil and gas, I believe it will always be part of the world energy mix in the foreseeable future. As you are aware, it has many more uses than for simply heating and cooling.
It was only a short time ago when we were seriously concerned with running out of oil and gas i.e. peak oil. Then along came technological advances that allowed us to recover the oil and gas from lower quality tighter formations, and to do so economically. Canada was one of the pioneers in developing that technology. In fact, Canada has one of the most technically excellent oil and gas workforces in the world.
As far as oil and gas production is concerned, it is important to understand two things. One, that oil and gas has no value unless it can be produced economically. And two, that drilling must be done on a continuous basis to maintain enough supply to satisfy demand. This is because the wells have a very steep decline, particularly those drilled in tight formations...which is mostly the case in NA. If we don't provide enough investment to make that happen, then the price for oil and gas will increase dramatically, along with inflation.
Speaking long term, as oil and gas is a finite resource, eventually the world will run out of the oil and gas that can be produced economically. However, I believe that is a long time off, and until that day arrives, I believe Canada will play a significant part in providing what the world needs in the way of oil and gas, as it is blessed with an inordinate supply of same.