Running head: CANADA INVESTING IN OIL 1

Canada Investing in Oil

Student’s Name

Affiliated Institution
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Canada Investing in Oil

Energy is of key significance to any effective functioning economy. It is both important

to the everyday activities of citizens and key in meeting the composite needs of the industries.

For a long period, oil and its byproducts has been a significant element of the world’s energy

source. Similar to other countries, Canada to fulfill its own needs and of the rest of the world, has

highly invested in oil industry. Presently, there are lot of discouraging efforts linked to the oil

and gas industry. The sector is obstructed by governments, activists, and even investors. Oil and

gas industry has huge smart money and new investment should be made as well as control of

obstructions linked to the industry.

Many entities do believe oil industry is a good investment and are reluctant to take in

societal pressures to reject associated obstructions in the sector. Relevant entities are targeted by

intensive drives to deny oil energy holdings. But some entities have dismissed the

acknowledgement of their fiduciary duty make the most of return on investment. Climate change

campaigners have declared fossil fuel and its derivatives to be a threat to the world (Fawcett,

2020). They are influencing various legislators that pushing their reasoning is the best way to

own political office. Activists’ movements are insightful to educational structures to persuade

people that conducive climate will be surfaced with renewable energy. But from observation of

citizen’s activities there are some diverse facts. Oil and its derivatives demand is increasing

globally every year and there is no end in sight. People studying the energy industry predict that

this growth will continue even without intervention of aggressive policies. This indicates that

increasing energy prices or restricting energy supplies through taxation and regulations.

Oil production in Canada will continue to develop since it is constantly investing and

improving its production. Indeed, Canada has become a key player among the globe’s top
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producers oil, contributing considerably to the total oil production. Saskatchewan is major

producer of oil in western Canada and one of the provinces that have turned the country to be a

key oil producer. Saskatchewan’s oil sector generates nearly $800 million annually in terms of

revenue contribution (Hayes, 2019). The province oil sector has economic implications to the

entire Canada and beyond. Both direct and indirect jobs are created by this industry. Further, the

sector encourages the growth of other industries depended on oil.

Canadian government should guarantee certainty of the oil and gas sector for it to

continue to be productive. In this respect, the government should acknowledge its significance in

promoting the economy and create effective and favorable policies for its operation. Besides, it is

vital to reflect on oil production environmental impacts, for the government to introduce policies

for operations, environmental protection policies are also effected. It can be recommended that

the Canadian government to create environmental protection policies which clearly states oil

production processes. The government can be recommended to also promote environmental

regulatory frameworks in oil industry.

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References

Fawcett, M. (2020). Opinion: Investing in oil and gas is the wrong lesson for Alberta to learn

from Lougheed. The Globe and Mail. Retrieved 14 December 2020, from

https://www.theglobeandmail.com/opinion/article-investing-in-oil-and-gas-is-the-wrong-

lesson-for-alberta-to-learn-from/.

Hayes, B. (2019). Should We Keep Investing In Canada’s Oil And Gas Industry? | Daily Oil

Bulletin. Dailyoilbulletin.com. Retrieved 14 December 2020, from

https://www.dailyoilbulletin.com/article/2019/11/18/should-we-keep-investing-in-

canadas-oil-and-gas-in/.