Canada has pledged to increase its fuel exports in order to help fill the hole left by the recent Russia boycott.
Countries all around the world have committed to squeezing Russia out of the fuel economy after the invasion of Ukraine, but that has created a vacuum in the market.
Russia was a major exporter of fuel, and displacing them over a short space of time is a major task, which is why Canada has promised to increase exports of oil, gas and uranium.
At the International Energy Agency in Paris this year, some of the world’s energy ministers pledged to accelerate a transition to clean energy, but requested Canada increase exports to aid that process.
Due to sanctions against Russia, up to three million barrels of fuel will be removed from the daily global market, with Canada aiming to increase its 2022 exports by 300,000 per day.
Unfortunately, the Canadian pipelines can only handle so much increase, although Natural Resources Minister Jonathan Wilkinson suggested that sending fuel via the United States could be a viable option.
Sonya Savage, Alberta Energy Minister, also recently received word that production could increase by an extra 200,000 to 400,000 barrels per day in the near future.
While global importers are placed under pressure to cease trading with Russia, potentially having a crippling effect on the Eastern European heavyweight, the problem of supply versus demand remains.
Wilkinson said: “This is a crisis. These folks in Europe are looking at the prospects potentially of not having fuel for the trucks that provide groceries for people to survive on or potentially not having adequate supplies of gas to heat their homes.”
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