CANADIAN OIL MARKETS of the Keystone XL pipeline . The pipeline isn ’ t essential for Canadian petroleum ’ s growth , but it ’ s an issue of concern . If the environmental movement gains more steam , it might pose a real challenge to profits .
Finally , Canadian oil will also have to compete with growing production in the United States . Most of the Bakken Formation is in North Dakota and available to U . S . petroleum companies . The U . S . has also expanded offshore drilling and , if the next president is a Republican , will likely increase drilling in Alaska , too . Since Middle Eastern production looks to be on the rise as well , it is possible demand will fall well short of supply and drive prices down further .
Generally , a few splotches on the canvass shouldn ’ t overwhelm the oil industry ’ s rosy picture . Canada ’ s natural oil wealth is larger than ever and extraction efforts already in progress all but assure profitability .
Natural Gas Oil and natural gas follow an almost parallel trajectory in Canada due to their similar extraction methods . With proven reserves in excess of 58 trillion cubic feet and a well-developed industry , it ’ s no surprise that Canada is the world ’ s fourth-largest producer . New technologies and ambitious investments by energy firms promise to increase that production over the next few years .
However , the same risk factors associated with Canada ’ s oil industry apply to the natural gas industry . Gas prices didn ’ t fall quite as precipitously in late 2014 as oil prices , but the markets definitely took a bearish turn . Production isn ’ t increasing only in Canada — almost every other major player on the gas market is gearing up to open the floodgates .
Rising production and declining prices aren ’ t a disaster for Canadian natural gas necessarily , but it does mean that producers will earn a lower margin per unit of gas extracted and sold .
Coal Of the big three fossil fuel markets , coal looks to be the least exciting growth opportunity in Canada for 2015 . The industry is definitely stable , capable of producing more than 60 million tons of coal a year and remaining profitable , but its growth prospects look sluggish . With reserves clocking in at over
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