[jstubbs]

Originally Posted by Dean2

You are right about that. The Saudis are the largest oil producers, behind the U.S. Kuwait doesn't even produce 3 million barrels a day, and the latest reports show these drone strikes are now thought to impact 10 million barrels a day of production, which is 10% of the worlds oil supply.

Canada has NO strategic oil reserves and the large reserves in the States would be difficult to ship to Canada, even if the U.S. Government who owns those reserves would release any to us, as most of it is stored near the Gulf of Mexico. Quebec and Ontario get 90% of their oil from offshore, relying on uninterrupted supply to meet ongoing needs. All of Canada only produces about 4 million Barrels per day and since most of it is locked in Alberta, 3 million B/D or Saskatchewan, it isn't going to solve short supply in the East.

The short sighted blocking of pipeline expansion, using offshore crude and failure to create a strategic reserves is already a very big problem and it will only get worse with the Saudi interruption and far worse if the attacks spread and impact more oil production. It is not a simple thing for other producers to quickly ramp up oil production to offset this large a disruption.

Great post. Thanks.