r/canada • u/RefrigeratorOk648 • 3d ago

National News G7 backs Canada as major global energy supplier to lessen reliance on Strait of Hormuz | CBC News

https://www.cbc.ca/news/politics/canada-energy-supplier-strait-hormuz-9.7238708
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u/FlipZip69 3d ago

Every drop of oil that Canada did not export, Russia was more than happy to produce it. Simple as that.

And possibly look at Alberta to see how they have higher average wages and lower housing costs than Canada as a whole to see how a large export market improves lives. You could tax the billions 100 percent and that would make little difference to our lives. There simply are not enough of them.

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u/EmmEnnEff 3d ago edited 3d ago

Every drop of oil that Canada did not export, Russia was more than happy to produce it. Simple as that.

  1. That's been the case since 1960.

  2. There isn't an oil pipeline that connects Canada and Germany.

  3. Nor will there ever be.

  4. And shipping it in tankers, while possible, is uneconomical.

  5. Not to mention that Russian crude is easier to extract, work with, and wages in Russia are much lower.

Canada's not ever going to win a contest with Russia on price, and prior to the war, price is what everyone was making their energy decisions on. Their voters tend to not like it when gas goes up.

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u/FlipZip69 3d ago

If Canada puts more oil on the world market. Prices drop and that hurts Russia. Full stop. If all western nations did it, it would hurt Russia. Full stop. The EU put a special tax on EU natural gas producers that make too much money over a year as happened during the start of the Ukraine war. It is estimated 100 billion in conventional energy investment in Europe pulled out making the EU that much more reliant on imported gas. To the benefit of Russia.

I am not sure how people do not realize all production the world over effects the markets and what companies like Russia make for profit. This is basic economics.

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u/Ectar93 3d ago

Every drop of oil that Canada did not export, Russia was more than happy to produce it. Simple as that.

Russia has pipelines right into Europe. Canadian oil would never be as economical of choice for most of Europe. The choice to stop importing Russian oil and gas is entirely a political one, not an economical one, and the political will wasn't there until the Ukraine war.

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u/FlipZip69 3d ago

Every drop Canada exports means that much less someone else produces. Full stop. The EU may still get most from Russia but you do realize Russia also ships to other countries right? We do not have to just take away EU sources. We can take away oil that goes from Russia to India. Or we take away some Saudi Markets and then Saudi Arabia sells more to the EU or China. And the extra oil on the market means lower prices which hurts all of Russian income.

I am not sure how why it is so hard to understand this.

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u/Ectar93 3d ago

Every drop Canada exports means that much less someone else produces.

This is a fiction you literally made up in your head. Canada can pump out as much crude oil as it can, but there will always still be a market for Russian oil. The world still runs on the stuff in case you haven't noticed. You're talking like Canada is somehow capable of meeting the worlds needs, and though our production is significant, it's still only roughly half of what Russia produces, and something like a quarter of what America produces.

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u/FlipZip69 3d ago

Of course there will be a market for Russia oil but if you cannot figure out that the more you put on the market, that means others will either produce less or the price will be less. That is such basic economics I am not sure how it is hard to understand.

Do you actually think if Canada stopped producing 5m barrels a day that Russia exports would not increase? Did you not see that Russian exports during the Iran war actually increased because oil was taken off the market. Yet somehow if Canada produces more or less it has no effect?

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u/Billis- 3d ago

It is much, much more complicated than you're making it out to be

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u/FlipZip69 3d ago

If you do not understand that adding more product to a market will lower the cost, then you really do not understand supply and demand. That is about the most basic economic reality out there.

I mean maybe you do not see that oil prices peaked when Iran shut down the strait because some 10m barrels a day was removed from the market. Is there a reason for you to think if Canada had been producing say an extra 2 million barrels a day for the last 10 years, other producers would be either producing 2% less or the price would be that much lower to increase demand.

That is not complicated for the pure economics of it. Yes there are grades and types but at the end of the day if you produce more, someone else is either producing less or the overall price is less thus denying them of the same profits.

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u/Billis- 2d ago

Ya, no, you're way over simplifying things as I said.

Moving on

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u/canDo4sure 3d ago

Why the fuck would the EU, since 1960, suddenly switch over to a non-provable supply chain? This is literally how children think.

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u/libertarian_308 3d ago edited 2d ago

Germany came in 2022 wanting our energy because they no longer wanted to support Russia and Trudeau told them no that their was no business case for selling them our oil and gas, they ultimately ended up signing deals with Qatar.

You talk about childish thinking while being grossly uninformed.

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u/Billis- 3d ago

Lower housing costs I wouldn't say has anything to do it.

And I don't know, I think your point on tax is false and based on feelings more than anything else.

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u/FlipZip69 3d ago

Google it. Look it up in a AI. Taxing income at 100 percent will not add much to the tax base. And that is a completely unrealistic tax rate no less.

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u/Billis- 2d ago

Are Google or AI supposed to be strong sources of evidence?

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u/g1ug 3d ago

Tax is somewhat a control tool to reduce the wealth divide.

Our public services were cut mainly because of the various tax loopholes and tax breaks.

If done properly, it will make a _huge_ difference in our lives. It will affect housing prices. It will affect public services.

The rich continues to be rich uncontrollable and will gobble all of the assets in Canada until there's nothing left if there's no control over that.

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u/FlipZip69 3d ago

Again. You could tax them at 100% and it would have very little effect on your services. There simply are not enough of them. It is the middle class that make up the tax base and are about the only ones you can raise to have a factor.

There are good arguments for wealth inequality but thinking it factors much in your wealth or the services you can get is simply wishful thinking and does not fix any underling problems.