Quote:
Originally Posted by canadian stig
doesn't canada produce its own oil? why the hell do we ship it to the americans to be refined and then buy it back?????????????? supposedly it's cheaper this way, but it doesn't make any sense! why not build a refinery here, employing canadians, and keep our money in our economy instead of giving it to the americans.
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We do. Canada is usually in the top 10 oil exporters in the world. Thanks to NAFTA 60% of our crude is exported to the US but we
import about 50% of the oil we consume (out east) from places like Algeria and Venezuela. The problem is there's no direct pipeline connecting the oil producing west with the gas consuming east. Look at the pipeline map:
http://www.cbc.ca/news/interactives/map-pipeline/
Oil from the west is refined down in the States then sent back to Ontario. Makes sense if you look at the pipelines. The west is self sufficient but I think prices are higher out here? Go figure.
More info on crude oil markets:
http://www.capp.ca/getdoc.aspx?DocId=209546&DT=NTV