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05 November 2004

Canada's Oil Reserves

Canada's Oil Reserves 2nd Only To Saudi Arabia
By Campion Walsh

The U.S. government said Thursday Canada holds the world's second-largest oil reserves, taking into account Alberta oil sands previously considered too expensive to develop.

The Energy Information Administration, the statistical wing of the U.S. Department of Energy, has included recent private sector estimates that an additional 175 billion barrels of oil could be recovered from resources known to exist in Western Canada since the 19th Century. At a briefing on this year's EIA International Energy Outlook, EIA Administrator Guy Caruso cited a December report in the Oil and Gas Journal that raised Canada's proven oil reserves to 180 billion bbls from 4.9 billion bbls, thanks to inclusion of the oil sands - also known as tar sands - now considered recoverable with existing technology and market conditions. "Canada will be producing a lot of oil from the development of these tar sands, but the quality of those reserves differs substantially from the Saudi reserves in terms of cost and ability to bring...the productive capacity on in a meaningful way," Caruso said. "There is a difference in the absolute amount versus the ability to turn that into productive capacity," he said.

The latest estimates put Canada ahead of war-torn Iraq, which the EIA estimates holds 112.5 billion bbls and is constrained from raising production for entirely different reasons. The U.S. agency estimates Saudi Arabia's recoverable oil reserves at 264 billion bbls.


The main reason the U.S. went to war in Iraq was because of the Oil? So when does the U.S. invade Canada?

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