Canada’s Economy $131 Billion Bigger With Asian Oil Markets

[Azure]

Dec. 15 (Bloomberg) -- Pipelines from Canada’s oil sands to the Pacific coast, including Enbridge Inc.’s proposed Northern Gateway route to tap markets in Asia, will raise the price received by producers by $13.60 a barrel by 2030, a university study said.

The extra profit would mean an additional C$131 billion ($127 billion) for Canada’s economy between 2016 and 2030, according to a study by the University of Calgary’s School of Public Policy. It would also add 649,000 person years of employment and generate tax revenue for provincial and federal governments, the report said.

http://www.businessweek.com/news/201...l-markets.html

[krynski]

Originally Posted by Azure

http://www.businessweek.com/news/201...l-markets.html

time to buy as many barrels of oil pissible...... then sell them in a little over a year!

[TurnedTheCorner]

I wonder how things like this are calculated or estimated with any kind of certainty. Still, ~$130B compared to ~$800M seems like a no-brainer with regards to Northern Gateway.

[MrMastodonFarm]

Originally Posted by krynski

time to buy as many barrels of oil pissible...... then sell them in a little over a year!

[SebC]

Originally Posted by krynski

time to buy as many barrels of oil pissible...... then sell them in a little over a year!

I'm pretty sure you're just joking, but when you buy "oil" (the commodity) you actually commit to taking delivery at Cushing within the month being traded. So if you wanted to do this, you'd have to have your own storage facility.

[CrusaderPi]

Originally Posted by SebC

I'm pretty sure you're just joking, but when you buy "oil" (the commodity) you actually commit to taking delivery at Cushing within the month being traded. So if you wanted to do this, you'd have to have your own storage facility.

I've always wondered how this works. Seems a little like the boom era real estate market. Lot's of people flipping the commodity, very few actual end buyers.

[SebC]

Originally Posted by CrusaderPi

I've always wondered how this works. Seems a little like the boom era real estate market. Lot's of people flipping the commodity, very few actual end buyers.

While the oil can be traded many times before delivery (leading to high speculator to end buyer), it does have a "shelf life" by which delivery must be taken. You sometimes see price dips at the end of the trading period if there's been too much speculation. I would say that because of this, it's not very real estate-like at all. Supply and demand are matched every month.

[Flames in 07]

Originally Posted by SebC

I'm pretty sure you're just joking, but when you buy "oil" (the commodity) you actually commit to taking delivery at Cushing within the month being traded. So if you wanted to do this, you'd have to have your own storage facility.

If you buy WTI on the NYMEX that's correct, but you can buy dozens of Cdn grades or even just the financial contract. I think the idea of buying the oil and waiting has nothing to do with WTI, it has to do with the Cdn grades.