Money Why has Canada spent billions of dollars buying Saudi Arabian oil?

12:15  09 august  2018
12:15  09 august  2018 Source:

Saudi Arabian group apologizes for posting image appearing to threaten Canada with 9/11-style attack

  Saudi Arabian group apologizes for posting image appearing to threaten Canada with 9/11-style attack Saudi Arabian group apologizes for posting image appearing to threaten Canada with 9/11-style attack"As the Arabic saying goes: 'He who interferes with what doesn't concern him finds what doesn't please him,'" reads a caption superimposed over the image. The infographic also accuses Canada of "sticking one's nose where it doesn't belong.

According to the Canadian Trade Commissioner Service, Canada exported .45 billion worth of products to Saudi Arabia in 2017, with about half SNC-Lavalin Group Inc. says on its website it has had a 24-year relationship with Saudi Aramco, the national Saudi Arabian oil company, providing

" Saudi Arabia 's freeze on trade with Canada isn't expected to affect the Canadian economy. Two-way trade between the countries was relatively small, totaling roughly 4 billion Canadian dollars (US.08 billion ) in 2017, according to Canadian government data.

PJT-Irving Oil-110.jpg: Irving Oil's © Peter J. Thompson/National Post Irving Oil's "Acadian" oil tanker at the companies loading docks in Saint John, New Brunswick, Wednesday May 19, 2016.

As Saudi Arabia aggressively severs ties with Canada, the two countries’ trade relationship hangs in the balance. On one hand, Canada will lose out on Saudi foreign students, military contracts and sales of wheat and grain. On the other, Saudi Arabia will lose the billions of dollars it earns every year by selling oil to Canada.

For years, it has been an oft-repeated Alberta grievance that these imports exist at all. Despite sitting atop an ocean of proven oil reserves, Canada continues to spend a small fortune every year buying oil from a country that executes homosexuals, flogs dissidents and has a nasty habit of funding Islamic extremism.

Saudi Arabia pulls its medical patients from Canadian hospitals

  Saudi Arabia pulls its medical patients from Canadian hospitals Saudi Arabia said on Wednesday it had stopped all medical treatment programs in Canada and was working on the transfer of all Saudi patients from hospitals there, in an escalating row after Ottawa urged it to free rights activists. Saudi Arabia froze new trade and investment with Canada and expelled the Canadian ambassador this week, pushing Canada to seek help from the United Arab Emirates and Britain to try to defuse the dispute.

CAIRO (Reuters) - Saudi Arabia 's oil supplies to Canada will not be impacted by a dispute between the two Bilateral trade between Canada and Saudi Arabia is worth nearly billion a year. Saudi Arabia has in recent months detained several women's rights activists, some of whom had previously

Saudi holdings of Canadian dollar reserves are between C billion (.7 billion ) and C billion , with the upper end of that estimate representing So far this year, Canada has exported C.4 billion in merchandise goods to Saudi Arabia and imported C billion , according to Statistics Canada data.

Below, a quick guide to why Canadians are still gassing up their cars with Saudi crude.

Over the last 10 years, Canada has spent $20.9 billion on Saudi crude

Between 2007 and 2017, Statistics Canada figures show that Canada imported a total of $20.9 billion of Saudi Arabian petroleum oils. For context, this is almost precisely what Canada spends on its military per year. It’s also way more than the expected $15.7 billion cost of the Energy East pipeline. On average, in recent years, Saudi Arabia supplies about 10 per cent of Canada’s oil imports. Canada, in turn, is responsible for buying roughly 1.5 per cent of total Saudi oil exports. What’s more, Saudi Arabia is climbing the leader board of countries that Canada’s relies upon for its foreign oil. As recently as 2010, Saudi Arabia ranked as Canada’s fifth largest supplier of foreign oil (behind Algeria, Norway, the U.K. and Kazakhstan). Now, Saudi Arabia is second only to the United States.

Saudi Airlines to suspend Canadian flights

  Saudi Airlines to suspend Canadian flights TORONTO - The rift between the federal government and Saudi Arabia has prompted the country's state airline to suspend operations in Canada. Saudi Airlines issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13. Saudi Arabia operates at least two routes to the country, both of which depart from Toronto. Transport Canada did not immediately respond to request for comment on the decision. Saudi Airlines' Saudi Airlines issued a tweet early Tuesday saying flights to and from Canada would be suspended starting August 13.

Saudi Arabia has faced a significant budget deficit since the oil price collapsed. It stood at billion last year. To cut the deficit, Riyadh has tried to implement fiscal measures, including spending cuts, raising taxes

Crude oil does more than deliver billions of dollars in profits to Saudi Aramco, the state oil company, and Almarai has bought farmland in Argentina, California and Arizona to produce alfalfa to ship here. Decline in Oil Prices Lands on Government Workers as Saudi Arabia Cuts Paychecks. Sept.

Right now, all the Saudi oil is coming through a single New Brunswick refinery

All of the Saudi oil imported into Canada in 2017 and 2018 came through New Brunswick, which only has one oil import facility: The massive Irving Oil-owned Saint John refinery. Between January and June of this year that refinery has imported $1.8 billion of Saudi oil — roughly $10 million per day. The amount of U.S. oil entering the refinery, for comparison, is equivalent only to about $3.8 million per day. Unlike most Canadian refineries, Saint John has no access to a pipeline; every barrel of oil it processes either comes by tanker or train. (The oil train that caused the Lac-Mégantic rail disaster, in fact, was headed to the Saint John refinery). “We source crude oil from all over the world for our refinery in Saint John, N.B.,” a spokesman for Irving Oil told the National Post in 2016. And whenever someone is seeking out the cheapest product from the world market, it’s not unusual that a lot of it is going to come from oil-rich Saudi Arabia. It’s like turning to the world market to buy the cheapest possible t-shirts: Chances are that they’re going to come from Bangladesh.

Canadian dollar gets whacked after Saudi Arabia reportedly starts dumping the country's assets 'no matter the cost'

  Canadian dollar gets whacked after Saudi Arabia reportedly starts dumping the country's assets 'no matter the cost' The Canadian dollar slid Wednesday after the Financial Times reported that Saudi Arabia had begun selling off its holdings of the country's bonds, stocks, and cash.According to the FT's Simeon Kerr, Saudi Arabia ordered the divestments "no matter the cost" after Canada criticised its arrest of Samar Badawi, a women's rights activist. Saudi central bank and state pension funds told their overseas asset managers to unload Canadian bonds, stocks, and cash holdings "no matter the cost," the report said. The selling began on Tuesday, it said.

Ever since oil was discovered in the Arabian desert in 1938, Saudi Arabia has been the world’s And the royal family has built spacious palaces at home while buying swanky houses abroad in places Saudi officials have pegged reserves at 266 billion barrels — a figure that has changed little even as

Saudi Arabia has said it intends to build two reactors near the Persian Gulf and is weighing five proposals, including one from a consortium led by “Building an indigenous uranium enrichment and reprocessing program for spent fuel is incredibly costly, in the tens of billions of dollars .”

Alberta and Saudi oil aren’t necessarily the same thing

Shell Albian Sands, north of Fort McMurray, is an Athabasca Oil Sands Project (AOSP). Albian Sands is a joint venture between Shell Canada (60%), Chevron Canada Limited (20%) and Marathon Oil Canada Corporation (20%) and consists of two mines, the Muskeg River and the Jackpine mines.: A sample of bitumen pictured in 2014. This is much different than what Saudi Arabia is selling.© Julia Kilpatrick/ A sample of bitumen pictured in 2014. This is much different than what Saudi Arabia is selling.

On paper, Canada could become energy self-sufficient tomorrow. Every day we produce about 3.9 million barrels of oil per day, and use less than 2 million barrels. A study this year from the Canadian Energy Research Institute even calculated that energy self-sufficiency might reduce emissions. But think of oil like whiskey: There are many different types and qualities. A bourbon connoisseur probably isn’t going to be happy with a bottle of Old Crow and a Manhattan isn’t going to taste the same if it’s made out of Scotch. Similarly, Alberta oil is not interchangeable with the stuff coming out of Saudi Arabia. Andrew Leach, an energy economist at the University of Alberta, even said that comparing the two is like comparing apples and oranges. “Saudi crude and WCS (Western Canadian Select) doesn’t overlap much in terms of their markets,” he told the National Post. For one thing, most eastern Canadian refineries cannot process bitumen, the thick tar-like hydrocarbon that comes out of the Athabasca Oil Sands. Almost anybody can process Saudi Arabian crude, but only an elite fraternity of the world’s most complex refineries can turn Alberta bitumen into gasoline. To get to the east coast, Canadian bitumen also has to be shipped overland from more than 4,000 kilometres away, significantly adding to its total costs (Saudi Arabia is 10,000 kilometres away from the Canadian east coast, but tanker shipment is cheap). It’s also why Western Canadian Select, the industry name for most oil sands bitumen, sells at such a steep discount to more conventional oil types coming out of Saudi Arabia. In June, for instance, WCS sold at an average of USD$52.10 a barrel, compared to USD$67.87 for West Texas Intermediate (WTI), an oil category priced similarly to most Middle Eastern oils. “The oil Alberta produces is simply of a lower quality than … WTI, and is located farther away from customers,” writes the Alberta government in an online briefing note describing the WCS “discount.”

Saudi Arabia spat leaves maple syrup producer in 'sticky situation'

  Saudi Arabia spat leaves maple syrup producer in 'sticky situation' A maple syrup producer in Nova Scotia has been forced to put a shipment on hold because of Ottawa's diplomatic row with Saudi Arabia. Then the phone rang.

"We are talking about investments worth several billion dollars ," he said. Neom, which will focus on food, entertainment, biotechnology, etc., is an attempt by Saudi Arabia to diversify its revenue, which has slumped as oil prices collapsed in 2014.

The decision by Saudi Arabia to halt new investments and unload assets in Canada is likely to have limited impact. The country imported C.63 billion (US bn) in goods from Saudi Arabia over that period, mostly crude imported to the Irving Oil Ltd. refinery in Saint John, New Brunswick.

Even with a pipeline, it’s not a guarantee that refineries would buy Canadian

Moose 2014 016.jpg: A young moose posing for pictures along the highway near Tweedside, New Brunswick in 2014. It's highly likely those cars are fuelled by Saudi oil.© Bruce and Beatrice Messer via Stefan Morrone A young moose posing for pictures along the highway near Tweedside, New Brunswick in 2014. It's highly likely those cars are fuelled by Saudi oil.

The cancelled Energy East pipeline, of course, would have pumped Saskatchewan and Alberta petroleum into New Brunswick. Politicians touted the pipeline as a way to supplant foreign suppliers such as Saudi Arabia. “We believe this nation-building project would have benefited all of Canada through new jobs, investment, energy security and the ability to displace oil being imported into Canada from overseas,” Alberta premier Rachel Notley said upon the project’s cancellation. However, refineries are no different than a driver cruising gas stations looking for a fill-up: They seek out whoever has the best price and buy accordingly. If Alberta can’t sell its oil on the Atlantic Coast for a lower price than Saudi Arabia, refineries aren’t going to buy it — particularly if they can’t process it. “Getting product from Western Canada, while conceptually sounding like a good way to push out Saudi oil, doesn’t fix everything,” said Jason Parent with the Canadian oil industry analyst Kent Group. As of press time, WCS is currently selling at an incredible $30 discount over more conventional oil types. While this would likely be enough to entice Atlantic buyers, the discount isn’t always so competitive — particularly if Saudi Arabia is actively trying to overproduce and drop oil prices in order to kneecap the Canadian and U.S. oil industry. This is part of the reason why Canada never built a pipeline to the east coast in the first place. A west-to-east pipeline was indeed considered soon after the discovery of oil in Alberta in the 1940s, but it was soon scrapped. “Eastern provinces did the math and found it cheaper to import foreign oil by tanker, rather than bother with the extra cost of domestic supply,” said Peter Tertzakian, director of the Calgary-based Arc Energy Research Institute. However, even if the business case is a little complicated, Tertzakian still advocates a pipeline as something Canada should do for strategic reasons. “We could be completely self sufficient if we wanted,” he said. “It’s just a question of how much we are willing to pay for it.”

Saudi Arabia expelling Canadian ambassador

  Saudi Arabia expelling Canadian ambassador Saudi Arabia expelling Canadian ambassador"We consider the Canadian ambassador to the Kingdom of Saudi Arabia persona non grata and order him to leave within the next 24 hours," Saudi Arabia's foreign ministry said on Twitter.

If Saudi Arabia chose to stop selling oil in dollars , which it would prefer to do after selling off its dollar holdings, then the US dollar would You can buy oil , copper, gold, airplanes, refined fuel, etc if you have a Canadian dollar , Peso, Euro, then the only thing you can use it for, outside of your home

Beijing is likely to “compel” Saudi Arabia to sell crude oil in yuan, and others will follow, according to the chief economist and managing director at High Frequency Economics Carl Weinberg. This will hit the US dollar , he says. In an interview with CNBC Weinberg said China has become a key player in

Canada can’t really hurt Saudi Arabia’s bottom line

The easiest way for Canada to cut off Saudi Arabia imports would be simply to buy more American oil. It’s about the same price, it doesn’t require specialized facilities and considering that they already buy so much of ours, there’s a certain justice to it. The U.S. also has an excellent human rights record compared to the Saudis. But while such a move might assuage Canada’s moral compass, the practical effect would be almost nil. It’s a seller’s market for oil right now. Production of U.S. shale oil is slowing down, Iran is being hammered by sanctions and petroleum demand continues to tick upwards all over the world. All this means that if Canada could successfully prevent a drop of Saudi oil from ever entering our borders again, it’s unlikely that Riyadh would ever notice. Any oil tanker turned away at Saint John could simply set course for New Jersey. Unlike Canada, Saudi Arabia sells a product that is easy to transport and that can be processed by almost anyone. Said Andrew Leach, “Saudi oil will still sell at the world price.”

Twitter: TristinHopper | Email:

What will happen to Saudi students enrolled in Canada? .
Universities and colleges are scrambling to help thousands of international students following Saudi Arabia's decision to pull those on Saudi-funded scholarships from Canadian schools. There were 8,310 Saudi students enrolled in Canadian post-secondary schools from January to May 2018, according to Immigration, Refugees and Citizenship Canada's website. From highest to lowest: 4,500 were enrolled in Ontario schools, 1,645 in British Columbia, 835 in Nova Scotia, 435 in Quebec, 395 in Saskatchewan, 245 in Alberta, 90 in New Brunswick, 70 in Manitoba, 60 in P.E.I. and 35 in Newfoundland.

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