The document summarizes the June 2018 oil market. It discusses how oil remains important for transportation but electric vehicles are growing. Canada is missing opportunities to export oil to countries like India and China due to regulatory hurdles. Many products still rely on petrochemicals from oil. The US and Canada are increasing infrastructure spending. It then analyzes oil rig counts, production and prices in Canada and the US, and discusses major issues like the Kinder Morgan pipeline, top oil consuming countries, the role of OPEC and Russia, and US and Canadian oil exports.

1. ENERGY MARKET -
OIL – JUNE 2018
BY: PAUL YOUNG CPA, CGA
DATE: JUNE 7, 2018

2. INTRODUCTION
Oil is still a key sector as about 2/3 of all oil goes to transportation. Electrical cars only make up about 2% of total vehicle sales -
https://www.businessinsider.com.au/the-rapid-growth-in-global-electric-vehicle-sales-in-4-charts-2018-1 There are issues with electrical cars
including access to raw materials, battery life, price point and charging stations
Canada is missing the boat when it comes to exporting to oil to countries like India and China. China and India are top consumers of oil
Canada new regulatory process is scaring off business investment - https://www.theglobeandmail.com/report-on-business/industry-news/energy-
and-resources/suncor-calls-on-canada-to-up-its-game-in-drive-for-investment/article37897767/
Many products still required petrochemicals (Plastics) and/or areas like asphalt - http://www.pavementinteractive.org/asphalt-production-and-
oil-refining/. Both Canada and USA are embarking on large infrastructure projects - http://bucksawtimber.ca/news/industry-news/government-
spending-on-infrastructure-is-slowly-making-its-way-down-the-pipe- or https://www.reuters.com/article/us-usa-trump-infrastructure/trump-
raises-infrastructure-investment-plan-to-1-7-trillion-idUSKBN1FD312

3. PAUL YOUNG - BIO
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

4. AGENDA
Oil Rigs % Change –vs- Oil Price % change
Kinder Morgan / Canada
Top Oil Consumers
Petrol dollar
OPEC and Russia Production
USA and Oil Exports
Canada and Oil Exports
Global Oil Production

5. CANADA VS USA – OIL RIGS
Source – BMO and BakerHughes
• Geopolitical issues are impacting Oil. USA is moving forward with a plan to be net
exporter of oil as compare to Canada who cannot even a get one new pipeline built
under Trudeau - https://www.brookings.edu/testimonies/geopolitical-implications-
of-u-s-oil-and-gas-in-the-global-market/

6. OIL RIGS % CHANGE –VS- OIL PRICE CHANGE
%
SOURCE – BAKER HUGHES AND BMO

7. CANADA OIL
PRODUCTIO
N
SOURCE – STATS
CANADA, BMO
ECONOMICS AND BAKER
HUGHES

8. KINDER MORGAN / CANADA
Source - https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/kinder-morgan-
sells-shares-to-help-fund-trans-mountain-pipeline-plan/article37226906/
Kinder Morgan Canada Ltd. is selling $200-million in shares even as the company dials
back spending and warns of additional delays to its marquee Trans Mountain pipeline
expansion.
The unit of Houston-based Kinder Morgan Inc. said Wednesday that it is selling eight
million preferred units at $25 each in a bought deal to major banks, with proceeds
earmarked to help finance the $7.4-billion pipeline expansion to Canada's West Coast.
The offering comes despite warnings the 590,000-barrel-a-day expansion project could
see oil shipments commence nine months later than originally planned. This week, the
company said delays could extend beyond September, 2020, further driving up costs.
Government of Canada has bought Kinder Morgan -
http://www.cbc.ca/news/politics/liberals-trans-mountain-pipeline-
kinder-morgan-1.4681911

9. TOP OIL
CONSUMER
S
SOURCE -
HTTPS://WWW.GLOBALFI
REPOWER.COM/OIL-
CONSUMPTION-BY-
COUNTRY.ASP

10. OIL
DEMAND
BY
SECTOR
SOURCE -
HTTP://WWW.GLOBALPE
TROLPRICES.COM/ARTIC
LES/39/

11. PETROL
DOLLAR
SOURCE -
HTTPS://WWW.RT.COM/B
USINESS/410056-SAUDI-
ARABIA-PETRODOLLAR-
ECONOMIST/

12. OPEC AND
RUSSIA
PRODUCTION
https://oilprice.com/Energy/Crude-Oil/US-
Asks-OPEC-To-Boost-Oil-Production-By-1-
Million-Bpd.html

13. OIL EXPORTS
AND USA
Source -
https://www.theguardian.co
m/business/2017/nov/14/us-
net-oil-exporter-iea-
international-energy-agency

14. CANADA AND
OIL EXPORTS
Source -
http://business.financialpost
.com/commodities/energy/b-
c-is-now-the-worst-
destination-in-canada-for-
oil-and-gas-investors-and-
among-the-worst-in-the-
world-survey

15. GLOBAL OIL PRODUCTION
Source - https://www.reuters.com/article/us-oil-iea-birol/u-s-to-account-for-most-world-oil-output-growth-over-10-years-iea-idUSKBN1DG1XP
The United States is expected to account for more than 80 percent of global oil production
growth in the next 10 years and it will produce 30 percent more gas than Russia by that time,
he International Energy Agency (IEA) said on Thursday.
“This has implications on the oil markets, prices, trade flows, investment trends and the
geopolitics of energy,” IEA head Fatih Birol said at a U.N. climate conference in Bonn.
He said the United States, whose upstream energy industry has seen a resurgence with the
development of fracking technology, would become the “undisputed leader of oil and gas
production worldwide.”
On the broader market, he said the IEA expected oil markets to rebalance in 2018 if oil demand
remained “more or less” as robust as it was now and if the Organization of the Petroleum
Exporting Countries and its allies extended output cuts.
OPEC and other producers are expected to extend production cuts beyond a March deadline in
a bid to cut oversupply.
The Paris-based IEA cut its oil demand forecast in its latest monthly report by 100,000 barrels
per day (bpd) for this year and next, to an estimated 1.5 million bpd and 1.3 million bpd,
respectively.

16. TRUMP
AND OIL
LEASES
SOURCE -
HTTP://WWW.LATIMES.C
OM/NATION/LA-NA-OIL-
GAS-LEASE-PUBLIC-
LAND-2018-STORY.HTML

17. TRUDEAU NEW POLICY ADVISER /
NATURAL RESOURCES
Sarah Goodman comes from the Tides’ Foundation which is anti-oil
Source - https://www.hilltimes.com/2017/08/21/new-environment-natural-
resources-policy-adviser-joins-pmo/116282