Comment 61573

By A Smith (anonymous) | Posted March 26, 2011 at 01:23:04 in reply to Comment 61563

>> We're a resource economy.

In 2009, Canada produced 3.4 Mbpd of oil. At a price of $100, that works out to $124.1 billion. However, we only exported 1.0 Mbpd, the rest of this oil we consumed domestically. This means that for 71% of the oil we produced, we didn't benefit from the high prices, because we had to pay those high prices ourselves.

If we assume that the price per barrel of oil was $100, that means we exported $100 * 365 days * 1 million barrels = $36.5B worth of oil. In 2010, the total value of our economy was $1.62 Trillion.

In other words, the total value of our oil exports in 2009 amounted to just 2.25% of total GDP.

If we truly are a resource economy, then should are oil exports be much bigger than 2.25% of the economy?

If we look at Saudi Arabia, we see they produced 9.7 Mbpd in 2010, but only consumed 2.4 Mbpd. Using an average price of $80, that gives them $213.2 Billion in oil exports. In 2010, their total GDP was $434 Billion. That means oil exports are around half of their economy.

Even with that fact and the fact that oil prices have doubled since 2005, Canada's GDP still grew faster than Saudi Arabia from 2005-2010.

Ask yourself this, would you rather have Steve Jobs investing our taxpayer dollars, or Hamilton city council? Warren Buffet, or Dalton McGuinty? Mark Zuckerburg, or Stephen Harper?

If we went more private and less government, this city would be far richer than we are today, that's just a fact.

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