Canada an Emerging Energy ’superproducer’

A report by the Fraser Institute released Thursday suggests Canada can become an energy “superproducer” without damaging other facets of the economy if growth is managed well. 

The report also says Canada will never be an energy superpower, as oft suggested by Prime Minister Stephen Harper, because it cannot use its energy sector to set market prices or exercise political power.

Unlike major companies, or countries like Russia or the oil cartel OPEC, Canada adheres to free trade and free market principles that prevent it from controlling its energy sector in a way that can affect the price of the oil it produces. 

But as a major producer of petroleum, electricity, and uranium, as well as other large energy projects in development or planned, Canada is becoming a “superproducer” of energy.

The study found Canada is currently sixth in the world for oil production, behind Russia, Saudi Arabia, the U.S., China, and Iran, but could move to fourth or third place with new investments in the oil sands and shale formations.

The report’s authors suggest the government refrain from increasing spending due to volatile resource revenues and invest or save those revenues.