ENERGY MARKET -
OIL – JULY 2018
BY: PAUL YOUNG CPA, CGA
DATE: AUGUST 31, 2018

INTRODUCTION
Oil is still a key sector as about 2/3 of all oil goes to transportation. Electrical cars only make up about 2% of total vehicle sales -
https://www.businessinsider.com.au/the-rapid-growth-in-global-electric-vehicle-sales-in-4-charts-2018-1 There are issues with electrical cars
including access to raw materials, battery life, price point and charging stations
Canada is missing the boat when it comes to exporting to oil to countries like India and China. China and India are top consumers of oil
Canada new regulatory process is scaring off business investment - https://www.theglobeandmail.com/report-on-business/industry-news/energy-
and-resources/suncor-calls-on-canada-to-up-its-game-in-drive-for-investment/article37897767/
Many products still required petrochemicals (Plastics) and/or areas like asphalt - http://www.pavementinteractive.org/asphalt-production-and-
oil-refining/. Both Canada and USA are embarking on large infrastructure projects - http://bucksawtimber.ca/news/industry-news/government-
spending-on-infrastructure-is-slowly-making-its-way-down-the-pipe- or https://www.reuters.com/article/us-usa-trump-infrastructure/trump-
raises-infrastructure-investment-plan-to-1-7-trillion-idUSKBN1FD312

PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

AGENDA
Oil Rigs % Change –vs- Oil Price % change
Kinder Morgan / Canada
Top Oil Consumers
Petrol dollar
OPEC and Russia Production
USA and Oil Exports
Canada and Oil Exports
Global Oil Production

CANADA VS USA – OIL RIGS
Source – BMO and BakerHughes
• Geopolitical issues are impacting Oil. USA is moving forward with a plan to be net
exporter of oil as compare to Canada who cannot even a get one new pipeline built
under Trudeau - https://www.brookings.edu/testimonies/geopolitical-implications-
of-u-s-oil-and-gas-in-the-global-market/

OIL PRICE CHART
SOURCE – BAKER HUGHES, HTTPS://WWW.NASDAQ.COM/MARKETS/CRUDE-OIL.ASPX?TIMEFRAME=10Y
AND BMO

CANADA OIL
PRODUCTIO
N
SOURCE – STATS
CANADA, BMO
ECONOMICS AND BAKER
HUGHES

KINDER MORGAN / CANADA
Source - https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/kinder-morgan-
sells-shares-to-help-fund-trans-mountain-pipeline-plan/article37226906/
Well done @JustinTrudeau @Bill_Morneau you bought a pipeline that will never be built!!
https://vancouversun.com/business/energy/five-things-to-know-about-todays-trans-mountain-
pipeline-court-ruling
I did this presentation a few months ago as it shows the issues with pipelines.
https://www.slideshare.net/paulyoungcga/why-is-it-difficult-to-approve-oil-and-gas-pipelines-in-
canada-october-2017
https://www.youtube.com/watch?v=cVfD2LXweBo
Liberals did nothing to fixed the process, right?

TOP OIL
CONSUMER
S
SOURCE -
HTTPS://WWW.GLOBALFI
REPOWER.COM/OIL-
CONSUMPTION-BY-
COUNTRY.ASP

INDIA AND OIL
Source - https://www.nextbigfuture.com/2018/08/india-will-become-main-driver-of-oil-demand-growth-by-
2024.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
India’s oil demand is set to increase by 3.5
billion barrels per day from 2017 to 2035,
which will account for a third of global oil
demand growth.
In 2017, China became the world’s biggest
importer of crude oil. China is predicted to
see a decline in oil demand growth from
2024 to 2035

OIL
DEMAND
BY
SECTOR
SOURCE -
HTTP://WWW.GLOBALPE
TROLPRICES.COM/ARTIC
LES/39/

PETROL
DOLLAR
SOURCE -
HTTPS://WWW.RT.COM/B
USINESS/410056-SAUDI-
ARABIA-PETRODOLLAR-
ECONOMIST/

OPEC AND
RUSSIA
PRODUCTION
https://oilprice.com/Energy/Crude-Oil/US-
Asks-OPEC-To-Boost-Oil-Production-By-1-
Million-Bpd.html

OIL EXPORTS
AND USA
Source -
https://www.theguardian.co
m/business/2017/nov/14/us-
net-oil-exporter-iea-
international-energy-agency

CANADA AND
OIL EXPORTS
Source -
http://business.financialpost
.com/commodities/energy/b-
c-is-now-the-worst-
destination-in-canada-for-
oil-and-gas-investors-and-
among-the-worst-in-the-
world-survey

GLOBAL OIL PRODUCTION
Source - https://www.reuters.com/article/us-oil-iea-birol/u-s-to-account-for-most-world-oil-output-growth-over-10-years-iea-idUSKBN1DG1XP
The United States is expected to account for more than 80 percent of global oil production
growth in the next 10 years and it will produce 30 percent more gas than Russia by that time,
he International Energy Agency (IEA) said on Thursday.
“This has implications on the oil markets, prices, trade flows, investment trends and the
geopolitics of energy,” IEA head Fatih Birol said at a U.N. climate conference in Bonn.
He said the United States, whose upstream energy industry has seen a resurgence with the
development of fracking technology, would become the “undisputed leader of oil and gas
production worldwide.”
On the broader market, he said the IEA expected oil markets to rebalance in 2018 if oil demand
remained “more or less” as robust as it was now and if the Organization of the Petroleum
Exporting Countries and its allies extended output cuts.
OPEC and other producers are expected to extend production cuts beyond a March deadline in
a bid to cut oversupply.
The Paris-based IEA cut its oil demand forecast in its latest monthly report by 100,000 barrels
per day (bpd) for this year and next, to an estimated 1.5 million bpd and 1.3 million bpd,
respectively.

TRUMP
AND OIL
LEASES
SOURCE -
HTTP://WWW.LATIMES.C
OM/NATION/LA-NA-OIL-
GAS-LEASE-PUBLIC-
LAND-2018-STORY.HTML

TRUDEAU NEW POLICY ADVISER /
NATURAL RESOURCES
Sarah Goodman comes from the Tides’ Foundation which is anti-oil
Source - https://www.hilltimes.com/2017/08/21/new-environment-natural-
resources-policy-adviser-joins-pmo/116282