Are We Captive To Our Own Oil?

What happens when traditional oil exporting nations stop?

Mexico, for example, is the second largest source of foreign oil for the United States. Within a decade, Mexico, and several other oil exporters, are likely to become net oil importers instead.

The New York Times reports that oil consumption is soaring within oil-rich nations, hastening the transformation.

The economies of many big oil-exporting countries are growing so fast that their need for energy within their borders is crimping how much they can sell abroad, adding new strains to the global oil market.

Experts say the sharp growth, if it continues, means several of the world’s most important suppliers may need to start importing oil within a decade to power all the new cars, houses and businesses they are buying and creating with their oil wealth.
Indonesia has already made this flip. By some projections, the same thing could happen within five years to Mexico, the No. 2 source of foreign oil for the United States, and soon after that to Iran, the world’s fourth-largest exporter. In some cases, the governments of these countries subsidize gasoline heavily for their citizens, selling it for as little as 7 cents a gallon, a practice that industry experts say fosters wasteful habits.

The trend, though increasingly important, does not necessarily mean there will be oil shortages. More likely, experts say, it will mean big market shifts, with the number of exporting countries shrinking and unconventional sources like Canadian tar sands becoming more important, especially for the United States. And there is likely to be more pressure to open areas now closed to oil production.

And there it is. If you think we're going to be able to clean up Athabasca or cut Canada's already massive carbon emissions, think again. Even if we, the Canadian people, really wanted to fight carbon-driven global warming, you're up against Edmonton, Ottawa and Washington - and that means, good luck and thanks for stopping by.