Oil Imports from Saudi Arabia on the Rise

[Penner]

I shake my head as to how anyone can claim that there is "no social acceptability" for western "dirty" oil in eastern Canada. Why would you not buy "Canadian first" particularly as western Canadian oil production ranks the highest in corporate governance, transparency, environmental stringency, innovation, and social responsibility. At the end of the tail pipe there is zero difference. IMO, like the railroads in the late 1800's, a pipeline to the eastern provinces would strengthen sovereignty and reduce our dependency on other nations.

Clearly the lobbyists are firmly entrenched in eastern Canada and perhaps we need to significantly increase lobbying for our best interests as a nation.

Canada's oil imports from Saudi Arabia have been rising steadily for the past five years, according to Statistics Canada trade data reviewed by CBC News, and a festering diplomatic spat with the kingdom appears not to have had any significant impact on Canada's appetite for Riyadh's crude.

The total volume of Canadian imports from Saudi Arabia has increased by 66 per cent since 2014, with imports rising every year during that period.

Last year, Canadian companies spent $3.54 billion importing 6.4 million cubic metres of Saudi oil, up from 5.9 million cubic metres worth $2.5 billion in 2017, before the dispute started in August 2018.

In January 2019, for example, oil imports from the kingdom were 606,000 cubic metres, up from 559,000 cubic metres a year earlier. And although monthly imports gyrate significantly — a normal trend in the oil business, according to analysts — the long-term trend is unmistakable.

"Over five years, imports from Saudi have increased," said David Hughes, a former research manager with the Geological Survey of Canada and president of Global Sustainability Research, a consultancy in Calgary. In January 2019, Saudi oil accounted for roughly 10 per cent of Canadian consumption, up from about eight per cent in 2017, he said.

Saudi Arabia is the second-largest source of foreign oil for Canada, after the U.S.

Not a diplomatic question:
Observers are divided on what rising imports from Saudi Arabia should mean for Canadian policy.

Human rights groups say Canada should not be propping up the Saudi regime by purchasing its oil, following the recent executions of 37 people, the killing of journalist Jamal Khashoggi, a bloody war in neighboring Yemen and a host of other abuses.

"Saudi Arabia's human rights record … has, in many deeply troubling ways, deteriorated considerably in recent years," said Alex Neve, secretary general of Amnesty International Canada.

"It is incumbent upon the Canadian government to ensure that business relationships do not cause or contribute to human rights violations in any country, including Saudi Arabia."

Petroleum accounts for about 70 per cent of Saudi export earnings and half of its gross domestic product, according to the Organization of Petroleum Exporting Countries (OPEC), meaning oil exports are the lifeblood of the kingdom's economy and its system of absolute monarchy.

Additional pipeline capacity:
A spokesperson for the Canadian Association of Petroleum Producers (CAPP) said increased imports from Saudi Arabia buttress the call for more pipelines to increase market access for Western Canadian crude.

"Right now, our pipeline network is fairly extensive but it doesn't extend to the East Coast," said Mark Pinney, CAPP's manager of markets and transportation. "There are some refineries Canadian producers are not easily able to reach.... Additional pipeline capacity is the answer to a lot of things."

Energy industry officials say rising imports strengthen the case for building pipelines from Alberta to Eastern Canada, where most Saudi Arabian imports are currently sold.

Environmental groups say more pipelines won't actually cut dependency on Saudi Arabia as Western Canadian oil can't be easily processed in eastern refineries, and investing in green energy is the best way to reduce dependency on autocratic, oil-rich states.

Other analysts say the imports aren't related to politics at all, and are based simply on privately owned Canadian refiners wanting the right kind of oil at the cheapest price.

Deteriorating rights situation:
Saudi Arabia's embassy in Ottawa did not respond to requests for comment.

While the war of words between Canada and Saudi Arabia has died down since last summer, the dispute continues. Canada has not apologized for calling for the immediate release of detained women's rights activists, as Saudi Arabia has demanded.

Ottawa hasn't had an ambassador in the kingdom since Dennis Horak was expelled last year and the Saudis have not rescinded their pledge to stop buying Canadian grains or reinstated flights to Toronto.

While oil imports from Saudi Arabia and the U.S. have increased, total Canadian imports have been falling since 2016, he said.

Imports are down overall because of the reversal of Enbridge's Line 9 pipeline, allowing more crude from Alberta's oilsands to be easily moved to refineries in Ontario and Quebec, said Pinney.

He said the industry is "frustrated" over slow progress in building new pipelines that would allow domestic producers to compete to supply Eastern Canadian markets, potentially displacing future imports.

Between 2015 and the end of 2018, he said, total Canadian imports fell by 13 per cent.

Canada is the fourth-largest producer and fourth-largest exporter of oil in the world, according to the National Research Council, and 99 per cent of Canadian oil exports go to the U.S. It's not uncommon for countries to be both exporters and importers of crude, analysts said.

Energy transition
Most Saudi oil exports to Canada go to refineries in Eastern Canada, specifically the Irving refinery in Saint John, and facilities in Quebec, said David Hughes, the consultant.

That refinery is specifically geared to handling light oil from the Middle East, rather than the heavy crude from the oilsands, said Hughes. Reconfiguring it to process Alberta oil would cost around $1 billion, he estimates.

Irving did not respond to interview requests.

It's unclear if the company would want to spend that money, even if Canada's pipeline network was extended to the Atlantic provinces, as the now-cancelled $15-billion Energy East Pipeline aimed.

"Irving Oil in Saint John [where the formerly proposed Energy East pipeline would go] have been clear that they would not sign binding contracts to take the oilsands oil," said Tim Gray, executive director of the Toronto-based campaign group Environmental Defence.

Most of the Albertan production proposed for the pipeline would have been exported, he added, urging Canadian companies to speed up the switch to renewable energy.

"Oil imports can and will be offset by successful efforts to electrify our economy," Gray said. "This means that electric cars, home heat pumps and industrial processes using clean electricity can cause a rapid decrease in the need for foreign oil."

Chris Arsenault · CBC News · Posted: Apr 28, 2019 4:00 AM ET | Last Updated: April 28

[barsik]

SNC Lavalin do a lot of business in Saudi Arabia, and Bombardier is busy manufacturing light armored vehicles for this middle eastern dictatorship, among other things. a lot of money is being passed back and forth, needless to say some of it is getting skimmed off.

[Bigwoodsman]

How much carbon is created shipping this blood crude 1/2 way around the world? It’s more of sparkle socks doing his Chrétien impression!

BW

[Scott h]

Originally Posted by Bigwoodsman

How much carbon is created shipping this blood crude 1/2 way around the world? It’s more of sparkle socks doing his Chrétien impression!

BW

That really is the question. I would like to see an actual break down of carbon costs between a barrel from Alberta compared to a barrel from Saudi. Nigeria, etc.
What really are the end numbers by the time it gets into a gas tank? I think that if someone a lot smarter than myself could put real numbers (good or bad) into a schematic for all of us not that aren't chemical engineers it could go a long way in countering false or misleading information. Or it could look bad for Canadian oil, but at least it would be accurate.

https://www.visualcapitalist.com/can...ne-barrel-oil/

[thumper]

I'd like to see the oil companies run a 1/2 page ad in every newspaper, every time a Saudi oil tanker docked in Canada. Highlight the type of oil, the price paid to Saudi Arabia, the amount of fuel & pollutants it took to ship it here, and what refinery was accepting the delivery.

Just so that Canadians could clearly see what we're doing here.

[wolf308]

Ruh ro

Saudi oil politics on AO

[Scott h]

Originally Posted by thumper

I'd like to see the oil companies run a 1/2 page ad in every newspaper, every time a Saudi oil tanker docked in Canada. Highlight the type of oil, the price paid to Saudi Arabia, the amount of fuel & pollutants it took to ship it here, and what refinery was accepting the delivery.

Just so that Canadians could clearly see what we're doing here.

That is exactly what I'm getting at. Post actual numbers and volumes. I'm all for someones choice to use less oil, but to vilify Canadian oil and then turn around and use the same amount of foreign oil seems mildly insane. We need to see actual amounts of CO2 produced from a barrel; including that amount produced from exploration to it burning in a vehicle. Shipping has been singled out as a very large source of pollution world wide and yet that doesn't get added to imported oils.

[Bigwoodsman]

Originally Posted by Scott h

That is exactly what I'm getting at. Post actual numbers and volumes. I'm all for someones choice to use less oil, but to vilify Canadian oil and then turn around and use the same amount of foreign oil seems mildly insane. We need to see actual amounts of CO2 produced from a barrel; including that amount produced from exploration to it burning in a vehicle. Shipping has been singled out as a very large source of pollution world wide and yet that doesn't get added to imported oils.

I’d also like to see these blood oil exporting countries carbon policies. What are their initiatives in reducing their carbon.

BW

[ReconWilly]

Originally Posted by Scott h

That is exactly what I'm getting at. Post actual numbers and volumes. I'm all for someones choice to use less oil, but to vilify Canadian oil and then turn around and use the same amount of foreign oil seems mildly insane. We need to see actual amounts of CO2 produced from a barrel; including that amount produced from exploration to it burning in a vehicle. Shipping has been singled out as a very large source of pollution world wide and yet that doesn't get added to imported oils.

Your 1st problem is that you believe anything these sociopathic parasite's ever say.

The whole carbon footprint myth is just 1 big lie complete with a middle finger mocking you for being so passively being screwed over.

Carbon footprint?!? hahahahahaha

Replant the forest's, they love carbon!!

[Scott h]

Originally Posted by ReconWilly

Your 1st problem is that you believe anything these sociopathic parasite's ever say.

The whole carbon footprint myth is just 1 big lie complete with a middle finger mocking you for being so passively being screwed over.

Carbon footprint?!? hahahahahaha

Replant the forest's, they love carbon!!

Well at least you've got it figured out. You should publish your results so everyone can rest easy......

[Scott h]

Originally Posted by Bigwoodsman

I’d also like to see these blood oil exporting countries carbon policies. What are their initiatives in reducing their carbon.

BW

That's the problem. Canada's answer to lowering our carbon production is to produce less oil and gas. They then feel better because they are using the same product from half way across the world, but know one is saying how much carbon is required to get that product to a Montreal gas station.
It's time to compare apples to apples and get that information out to the public in an accurate, easy to understand format.

[browning21]

https://www.marinevesseltraffic.com/...ker-track.html
Check this out if you are curious as to how many tankers are currently in the St Lawrence River.

[Silvercreek]

Originally Posted by Bigwoodsman

I’d also like to see these blood oil exporting countries carbon policies. What are their initiatives in reducing their carbon.

BW

Who cares, according to all of the scientists and experts on here there is absolutely no evidence of any form of climate change so why would anyone be concerned about reducing carbon?

[Sundog57]

First off guys - it's NOT everybody in the East.
The Energy East is supported by many, many Easterners.
Hell about half of the population of Fort Mac come from here.
I have written to Jason Kenney, Blair Higgs and the CPC and anybody else I can think of - this topic really chafes my *****

As sent to Mr Kenney:

Dear Mr Kenney:
First off congratulations on your election success.
Canada requires something to counterbalance the bizarre ideologies being spouted by our Prime Minister, he of blessed name.

With regard to Energy East
The Gulf of St Lawrence and the St Lawrence Estuary constitute a totally enclosed body of water
As you are no doubt aware, this environmentally sensitive area is the home of threatened Right Whales and Belugas and also a large and lucrative fishing area
The Federal Government in its commitment to the environment, has severely curtailed the marine transportation industry in the interests of protecting Right Whales and the environmentally sensitive Gulf.
The Federal Government has also seen fit in its current mandate to:
Ban tanker traffic from a large section of the BC Coast, essentially stifling the construction of the Indigenous sponsored Eagle Spirit Pipeline.
Hire two large tugs (notwithstanding the political interference that went into the selection process) to remain on standby on the West Coast to deal with any marine casualty.
Allow the effect of increased tanker trafficin the Straits of Jaun de Fuca to be used in attempts to block the Trans-Mountain Pipeline.

They have not paid any attention whatsoever (one would assume willful blindness) to the much greater risk existing in the St Lawrence Gulf and River where bulk crude oil is regularly transported in very constrained and environmentally sensitive waters which are also seasonally affected by ice.

On December 01 2015, Enbridge completed the reversal of the #9B pipeline between Sarnia and Montreal.
The pipeline was originally constructed to allow the transport of imported crude oil from Montreal to the refineries in the Sarnia area.
It is now used to allow the export of Western crudes, primarily of American origin from the Bakken, to other markets.
The major “other market” is the Valero refinery in St. Romuald across the River from Quebec City.
The oil is transported on two 77,000 tonne tankers operated by Desgagnes (a Quebec company) which make a combined average of four trips a week, this rather than building a pipeline directly to the refinery.
The Valero refinery is also fed by imported oil coming in large tankers, primarily from Saudi Arabia through the Cabot Strait up the Gulf and River to Quebec City.
There is no question that Desgagnes is a first class professional ship operator, however there can also be no question that the transport of crude oil by tanker has a risk profile that is orders of magnitude greater than by pipeline.
It is interesting that the transport of crude by tanker by a Quebecois Company with Quebecois crew feeding a Quebec based refinery which supports some 700 jobs did not seem to come to the attention of Mr Phillippe Couillard when he raised his voice against Energy East and that it has apparently not come to the attention of the current Premier either (or our sainted Prime Minister)
Canada has little control over the operations of the foreign flag tankers bringing crude oil in through the Gulf (until they arrive in a Canadian port, by which time any defects might have had disastrous effects)
A catastrophic accident in the River or Gulf would have a significant environmental and economic impact throughout the entire area, including all of the Maritime Provinces as well as Quebec.

No one seems to be willing to stand up in public and ask WHY, it is OK for large crude tankers feeding a refinery in Quebec to transit environmentally sensitive areas, and why it is NOT acceptable to apply the same standards to vessels that would be used to transport Alberta crude for export.

I believe that it would be reasonable for the Alberta Government to insist, in the interests of environmental protection, of consistency and in keeping with Federal policy in British Columbia’s “fragile coastal waters”, that the Federal Government ban the transport of crude oil by tanker in the Gulf and River anywhere West of the Cabot Strait (between Cape Breton and Newfoundland).

As a secondary, more conciliatory position, the Alberta Government could propose that all crude oil tankers operating in the Northern BC zone and also between the Cabot Strait and Montreal be escorted by one or two tugs of at least 150 tonnes bollard pull (typically 14-17,000 horsepower). This strategy was successfully adopted by the US and Alaskan governments in Prince William Sound after the Exxon Valdez disaster.

Perhaps such a ban, potentially leading to the shutdown of a major Quebec refinery employing about 700 persons, might modify the Premier of Quebec’s position on Energy East.
At least bringing the situation to light would show once again the Prime Minister’s hypocrisy when dealing with topics that affect his home province.

[Scott h]

Originally Posted by Sundog57

First off guys - it's NOT everybody in the East.
The Energy East is supported by many, many Easterners.
Hell about half of the population of Fort Mac come from here.
I have written to Jason Kenney, Blair Higgs and the CPC and anybody else I can think of - this topic really chafes my *****

As sent to Mr Kenney:

Dear Mr Kenney:
First off congratulations on your election success.
Canada requires something to counterbalance the bizarre ideologies being spouted by our Prime Minister, he of blessed name.

With regard to Energy East
The Gulf of St Lawrence and the St Lawrence Estuary constitute a totally enclosed body of water
As you are no doubt aware, this environmentally sensitive area is the home of threatened Right Whales and Belugas and also a large and lucrative fishing area
The Federal Government in its commitment to the environment, has severely curtailed the marine transportation industry in the interests of protecting Right Whales and the environmentally sensitive Gulf.
The Federal Government has also seen fit in its current mandate to:
Ban tanker traffic from a large section of the BC Coast, essentially stifling the construction of the Indigenous sponsored Eagle Spirit Pipeline.
Hire two large tugs (notwithstanding the political interference that went into the selection process) to remain on standby on the West Coast to deal with any marine casualty.
Allow the effect of increased tanker trafficin the Straits of Jaun de Fuca to be used in attempts to block the Trans-Mountain Pipeline.

They have not paid any attention whatsoever (one would assume willful blindness) to the much greater risk existing in the St Lawrence Gulf and River where bulk crude oil is regularly transported in very constrained and environmentally sensitive waters which are also seasonally affected by ice.

On December 01 2015, Enbridge completed the reversal of the #9B pipeline between Sarnia and Montreal.
The pipeline was originally constructed to allow the transport of imported crude oil from Montreal to the refineries in the Sarnia area.
It is now used to allow the export of Western crudes, primarily of American origin from the Bakken, to other markets.
The major “other market” is the Valero refinery in St. Romuald across the River from Quebec City.
The oil is transported on two 77,000 tonne tankers operated by Desgagnes (a Quebec company) which make a combined average of four trips a week, this rather than building a pipeline directly to the refinery.
The Valero refinery is also fed by imported oil coming in large tankers, primarily from Saudi Arabia through the Cabot Strait up the Gulf and River to Quebec City.
There is no question that Desgagnes is a first class professional ship operator, however there can also be no question that the transport of crude oil by tanker has a risk profile that is orders of magnitude greater than by pipeline.
It is interesting that the transport of crude by tanker by a Quebecois Company with Quebecois crew feeding a Quebec based refinery which supports some 700 jobs did not seem to come to the attention of Mr Phillippe Couillard when he raised his voice against Energy East and that it has apparently not come to the attention of the current Premier either (or our sainted Prime Minister)
Canada has little control over the operations of the foreign flag tankers bringing crude oil in through the Gulf (until they arrive in a Canadian port, by which time any defects might have had disastrous effects)
A catastrophic accident in the River or Gulf would have a significant environmental and economic impact throughout the entire area, including all of the Maritime Provinces as well as Quebec.

No one seems to be willing to stand up in public and ask WHY, it is OK for large crude tankers feeding a refinery in Quebec to transit environmentally sensitive areas, and why it is NOT acceptable to apply the same standards to vessels that would be used to transport Alberta crude for export.

I believe that it would be reasonable for the Alberta Government to insist, in the interests of environmental protection, of consistency and in keeping with Federal policy in British Columbia’s “fragile coastal waters”, that the Federal Government ban the transport of crude oil by tanker in the Gulf and River anywhere West of the Cabot Strait (between Cape Breton and Newfoundland).

As a secondary, more conciliatory position, the Alberta Government could propose that all crude oil tankers operating in the Northern BC zone and also between the Cabot Strait and Montreal be escorted by one or two tugs of at least 150 tonnes bollard pull (typically 14-17,000 horsepower). This strategy was successfully adopted by the US and Alaskan governments in Prince William Sound after the Exxon Valdez disaster.

Perhaps such a ban, potentially leading to the shutdown of a major Quebec refinery employing about 700 persons, might modify the Premier of Quebec’s position on Energy East.
At least bringing the situation to light would show once again the Prime Minister’s hypocrisy when dealing with topics that affect his home province.

I agree that not everyone in the east is against energy east (THE pipeline that makes the most sense of any). But it did get shut down due to eastern oposition. One way to get every province in Canada focused would be to put an end to out of province hiring. Could you imagine the financial hardship in the eastern provinces (and BC) if every worker that is currently bringing in big paycheques every 2 weeks was out of work? I believe there would be some serious head lines and focus groups started ASAP.

[Bigwoodsman]

Originally Posted by Scott h

I agree that not everyone in the east is against energy east (THE pipeline that makes the most sense of any). But it did get shut down due to eastern oposition. One way to get every province in Canada focused would be to put an end to out of province hiring. Could you imagine the financial hardship in the eastern provinces (and BC) if every worker that is currently bringing in big paycheques every 2 weeks was out of work? I believe there would be some serious head lines and focus groups started ASAP.

Or if out of province workers had to have their payroll tax set to Alberta.

BW

[bloopbloob]

I don't even want to... but feel like I have to.
I spent 5yrs in an environment related, post-secondary schooling. This is the biggest crock ever. CANADA removes more CO2 than it emits. It's a tax grab. Plain and simple. Hopefully sparkle socks gets himself a bedazzler, and just gets too consumed by that, and we can get a real leader that is not the laughing stock of the umm errr ummm world.... Ask me how I feel.... hahaha

[MountainTi]

Originally Posted by Scott h

I agree that not everyone in the east is against energy east (THE pipeline that makes the most sense of any). But it did get shut down due to eastern oposition. One way to get every province in Canada focused would be to put an end to out of province hiring. Could you imagine the financial hardship in the eastern provinces (and BC) if every worker that is currently bringing in big paycheques every 2 weeks was out of work? I believe there would be some serious head lines and focus groups started ASAP.

Originally Posted by Bigwoodsman

Or if out of province workers had to have their payroll tax set to Alberta.

BW

Yes and yes

[Scott h]

Originally Posted by Bigwoodsman

Or if out of province workers had to have their payroll tax set to Alberta.

BW

Absolutely. Could you imagine what would happen to those provincial budgets without the taxes brought in from all those working in Alberta.

[Sundog57]

Originally Posted by Scott h

Absolutely. Could you imagine what would happen to those provincial budgets without the taxes brought in from all those working in Alberta.

Talk to anyone who knows anything about tax.
ANYONE who can have their taxes assessed and paid in Alberta does so.
Just because they come from NL or NS doesn't mean they're dumb.
Tax rates in the east are about 25% higher than they are in AB

[Sundog57]

and PS - the block to Energy was Quebec straight up and simple.
That's why the Enbridge #9/tanker business is such flagrant hypocrisy

[Scott h]

Originally Posted by Sundog57

Talk to anyone who knows anything about tax.
ANYONE who can have their taxes assessed and paid in Alberta does so.
Just because they come from NL or NS doesn't mean they're dumb.
Tax rates in the east are about 25% higher than they are in AB

Anyone that lives outside of Alberta should legally be filing for that province not where their job is. Some will fudge the law but could be in for a nasty surprise if they get reassessed.

[Sundog57]

Exactly - was responding to the post above mine

[gunluvr]

Until the corrupt Quebec-focused federal liberals are crushed in an election, there will be no common-sense based economic decisions made by the federal government of this country. Most voters in Quebec will never be convinced of this fact because the liberals will always pander to their demands. But it's where the most votes are and liberal "lobbying" is firmly entrenched in Quebec industries.