Essay

            CIA4U-Culminating Performance Task：

                          The crisis facing Canada's oil industry

                        Name:CHEN ZELONG（kevin）

                                Teacher:Mr.McGill

                        Date of submission:April 23th,2019

PartA：                                                                                           Chen 1

        Major economic events：

        Canada is rich in energy resources and is an energy power. Canadian oil reserves, including oil sands, account for 11.4% of the world's total, second only to Saudi Arabia and Venezuela, ranking thirdo in the world.(source：Natural Resources Canada） If production exceeds consumption, the remainder is used to export major exports from other countries. Canada’s main oil export target is the United States, but no one believes that the current Canadian oil turmoil has seriously affected Canada’s economic reasons. When the world is responding to excess oil supplies, energy is the biggest contributor to Canada's export earnings. Learn about price changes and gasoline values ​​and subsequent economic impacts by reference to oil data.

PartB：

        The specific cause and impact of the incident：

        Canada has a wealth of oil resources, but the market is small. This situation determines that it must adopt a trade economic route to sell its natural resources and purchase other items. In recent years, Canada has repeatedly raised its own tariffs and boycotted US goods.（CBC News) However, Canada does not have its own choices and must ultimately be subject to US restrictions.Because the eastern part of Canada would rather import oil from the southern neighbor of the United States than transport it from the western part, the cost is too high and the cost is too high. More importantly, strategic resources such as oil are more limited. Alberta is Canada's main oil producing region, with

                                                                                                Chen 2

data showing that the province produces about 3.6 million barrels of oil a day, and production will be higher and higher. （CBC News）But the province is facing an oversupply problem. The region's difficulties in attracting investment and the price gap created a record low at the end of last year, which hindered the increase in production and exports outside North America. This means that Canada recognizes that even if it has a large oil reserve, it still can not do and even enters a serious oil crisis. At the same time, the Alberta government decided to cut production by 8.7% per day, or 325,000 barrels per day. Low oil prices put Alberta's economy in crisis. The decline in oil production costs has not only affected the economy, but also affected about 12,500 natural gas and oil jobs this year due to low commodity prices, declining capital expenditures and uncertainty about putting oil and gas into the market. （CBC News）Greatly affect employment issues.This problem mainly exists in Alberta, because the oil chaos in Alberta is very serious, and production cuts and price cuts have to use layoffs to reduce oil production costs.An oil company in Alberta says the international oil price is currently around 50 dollars a barrel, 25 dollars a barrel oil price can also be profitable, but the minimum cost can be as low as 10 dollars a barrel.To make matters worse, oil spills caused by oil pipeline construction in recent years have seriously affected aquaculture and tourism in the Canadian agricultural sector. (CBC News）The aquaculture and fishing industries are an important part of the Canadian agricultural economy. This is related to the harvest of Canadian farmers in the future.

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