The USA pulls an ace in the hole to regain the lead

A new actor enters the new “The war on oilWhich may help the West and revive the American position in this undeclared conflict. the CanadaThe world’s second-largest country and perhaps the United States’ closest ally on the planet is increasing its oil exports.

Canada has The third largest oil reserve From the world. This statistic is often misleading, as having large reserves does not necessarily mean a leading position in the global crude oil market. the VenezuelaFor example, it has the world’s largest reserves, but ranks only 12th in production and 22nd in oil exports.

The usefulness of a country’s oil reserves is calculated on the basis of many factors. Large domestic demand, for example, hinders exports to the outside world. the United StateThe United Arab Emirates, with a population of 331 million people and large industrial areas, ranks first in the world Oil production global despite its relatively low reserves.

to’Kingdom of Saudi ArabiaIn contrast, its territory is mostly desolate and its population is smaller than Poland’s, allowing it to export large amounts of oil from the country.

In fact, Saudi Arabia’s grip on global crude oil exports is so strong that even a small decline would completely change the balance of global markets. together with RussiaThis is exactly what Saudi Arabia has been doing since July, dramatically increasing oil prices in the West.

So far, the West has been unable to confront the Saudi threat.

New ally

Despite its large reserves, Canada is not an oil country, unlike Saudi Arabia and Russia. a “Petrostat“It is a country whose economy depends mainly on fossil fuel exports.

From the perspective of the United States, Canada is a country Compatible ally With a small population and many natural resources ready to be exploited. Similar to what Russia became for China after the war in Ukraine.

Canadian oil passes through the United States and is loaded onto commercial ships in Texas Before entering the global market. Without the United States, Canada would not have the ability to export oil.

In addition, Canadian oil is a favorite among American fuel producers. Texas refineries produce Gas of Canadian crude before being exported using the same ports.

In the wake of tensions between the United States and the Organization of the Petroleum Exporting Countries (OPECLed by Saudi Arabia, it is no surprise that Canada is increasing its exports. According to Bloomberg, Canadian oil exports It will increase sixfold in November compared to September levels.

This agreement is beneficial for both countries. The United States gains an advantage in the oil war, while Canada gets a significant influx of cash to peacefully support its economy.

For the first time since its inception, the West does not appear desperate in the new oil war. How long will it last?

Article published on Money.it International Edition On 2023-09-25 10:33:38. Original title: Canada increases its oil exports as the West fights OPEC and prices rise