A Canadian newspaper claims the boom in U.S. oil production
spells peril for Canadian crude.
According to The Globe and Mail, the United States is now
staring at an energy future awash with its own crude, with
far-reaching consequences for Canada's oil sands, the U.S. economy
and global geopolitics.
Dan Kish, senior vice president for policy at the Institute for Energy Research (IER), agrees the
U.S. is seeing a boom in production -- but not because of the
Congressional Research Service did a report recently that said that
96 percent of the increase in oil production from 2007 until now
has been on non-federal land, and the federal government owns more
land -- when you include the offshore, considerably more land --
than the non-federal lands in the United States," he tells
Kish adds that that the U.S. already supplies more oil than
Canada, but we consume a significantly larger amount. As for the
Keystone XL pipeline, Kish points out that the delay for that
project actually slows down development of their oil fields, which
he says is part of the reason why opponents are trying to stop the
pipeline from happening.
Last week, a House Energy and Commerce subcommittee held a
hearing that examined how much energy could be produce and
projected that the United States will become the largest oil
producer in the world by 2020, provided the government does not
stop that from happening.
"The United States is the second largest [producer of oil] in
the world, very recently surpassing Russia in terms of production,"
Kish says. "We are the number-one producer of natural gas in the
world, and we've got the number-one coal supply in the world. But
China produces much more coal than we do and consumes almost four
times as much coal as we do."