Despite its shortcomings, Canada is not an economic basket case​

[kANOLA]

So its the oil sands and oil industry that is dragging productivity in Canada down!


Canadian productivity growth: Stuck in the oil sands

Oliver Loertscher ([url]https://onlinelibrary.wiley.com/authored-by/Loertscher/Oliver[/url]), Pau S. Pujolas ([url]https://onlinelibrary.wiley.com/authored-by/Pujolas/Pau+S[/url].)

[url]https://onlinelibrary.wiley.com/doi/abs/10.1111/caje.12707[/url]

First published: 11 April 2024
[url]https://doi.org/10.1111/caje.12707[/url]

Abstract

We study the behaviour of Canadian Total Factor Productivity (TFP) growth over the past 60 years. We find that the observed stagnation during the last 20 years is accounted for entirely by the oil sector. Higher oil prices made capital-intensive sources of oil like the oil sands viable to extract on a commercial scale. However, the greater input required per barrel of oil slowed TFP growth. Comparing Canadian TFP growth with that of the United States and Norway reinforces these results. However, our result should not be interpreted to carry any welfare implications.

To post and believe this kind of crap makes me wonder about your health.This is total BS.

[blackpowder]

This is purely statistical manipulation to support nonsense.
If you're an adult by any definition you'll grasp where we'd be today without any resource utilization.
We're being played in responding to this drivel.
One resource bad another good.
By definition, are they different.
Your forefathers were pious pulverizing native soil while mine were slaves to some darker demigod?
They all put the power poles in in the 50s with a co-operative mindset.
By all means tear asunder selectively , but reap collectively.
A fool behind disguise is still foolish.
In other news, Columbia squandered the limited oil sales they had and squashed the future.
An Arab saying I believe, our great-grandfathers rode camels, we drive Mercedes, out great - grandsons will again ride camels.
And there will always be a Chuck. Phfft....

[chuckChuck]

You gotta laugh about all the complaining about measuring productivity in the economy. That measure shows the oil sector has low productivity and that other sectors are increasing productivity.

Not only that, the oil sector takes a lot of excess profit from consumers but doesn't invest much in cleaning up the mess of abandoned facilities and leases they leave behind. It's irresponsible mismanagement of a one time resource!

"In 2022, oil and gas extraction companies made $270 billion in total revenue and $63 billion in profits in Canada, according to Statistics Canada."

23% profit! While Canadians were struggling to pay their bills?

Its a massive wealth transfer to the petro elite.

But you can bet PP and the petro premiers will never talk about the high cost of oil company profits!

[Hamloc]

You gotta laugh about all the complaining about measuring productivity in the economy. That measure shows the oil sector has low productivity and that other sectors are increasing productivity.

Not only that, the oil sector takes a lot of excess profit from consumers but doesn't invest much in cleaning up the mess of abandoned facilities and leases they leave behind. It's irresponsible mismanagement of a one time resource!

"In 2022, oil and gas extraction companies made $270 billion in total revenue and $63 billion in profits in Canada, according to Statistics Canada."

23% profit! While Canadians were struggling to pay their bills?

Its a massive wealth transfer to the petro elite.

But you can bet PP and the petro premiers will never talk about the high cost of oil company profits!

Chuck2, when canola was approaching $25 a bushel what percentage was your profit? Did you consider it offensive? When the price of oil went down during Covid and oil companies were losing money did you consider that offensive? Do you believe government should dictate levels of profit for business?

[jazz]

In Alaska, every citizen gets $1000 month royalty cheque from oil. In Saudi, most of the country have no jobs, thye get cash from oil. In Canada we dont get a cheque, we get the luxury of supporting a whiny bunch of a-holes from Quebec.

Tell me chuck, what other part of the economy could do that. Uber drivers. Oil is the most intense resource and economic driver this country has got. Nothing in Canada has ever come close to it, nor will it ever. 1 barrel of oil is worth one mans life time of labour. The productivity from that resource is off the charts.

Chuck would have you believe we can replace oil with 7-11s or some sh*t. This is the mind of an economic literate. No way he put a 40 quarter farm together himself.

[sumdumguy]

While US advances we accelerate into the toilet. Our dollar hasn’t fully shown this disastrous regime. Americans will buy us out at 50 cents to the dollar. The world marches on laughing at the gong show that Canada has become.

[foragefarmer]

In Alaska, every citizen gets $1000 month royalty cheque from oil. In Saudi, most of the country have no jobs, thye get cash from oil. In Canada we dont get a cheque, we get the luxury of supporting a whiny bunch of a-holes from Quebec.

Tell me chuck, what other part of the economy could do that. Uber drivers. Oil is the most intense resource and economic driver this country has got. Nothing in Canada has ever come close to it, nor will it ever. 1 barrel of oil is worth one mans life time of labour. The productivity from that resource is off the charts.

Chuck would have you believe we can replace oil with 7-11s or some sh*t. This is the mind of an economic literate. No way he put a 40 quarter farm together himself.

Jazz, just making a comment regarding payouts to Canadian citizen regarding oil royalty cheques, shouldn't it have happen when Harper was PM and oil was $150.00/barrel and the Canadian dollar was $.05 above the USA dollar?

[WiltonRanch]

Jazz, just making a comment regarding payouts to Canadian citizen regarding oil royalty cheques, shouldn't it have happen when Harper was PM and oil was $150.00/barrel and the Canadian dollar was $.05 above the USA dollar?

You forget at that time eastern Canada was flat as piss on a plate from the fallout of 2008. The country was living on oil revenues.

[sumdumguy]

There is no way Canada should be a basket case. With the resources we have been endowed with, productive land, abundant forests and our location between US and Europe, we should be one of the richest countries on earth. Its a crying shame that we are held hostage by the Laurentian elites and their Quebec buddies.

[blackpowder]

Jazz, just making a comment regarding payouts to Canadian citizen regarding oil royalty cheques, shouldn't it have happen when Harper was PM and oil was $150.00/barrel and the Canadian dollar was $.05 above the USA dollar?

It happened under Ralph.

[shtferbrains]

While US advances we accelerate into the toilet. Our dollar hasn’t fully shown this disastrous regime. Americans will buy us out at 50 cents to the dollar. The world marches on laughing at the gong show that Canada has become.

What could go wrong?

[foragefarmer]

You forget at that time eastern Canada was flat as piss on a plate from the fallout of 2008. The country was living on oil revenues.

year---- avg-- ---open---------high--------low------close--- % change.

2014	$93.17	$95.14	$107.95	$53.45	$53.45	-45.55%
2013	$97.98	$93.14	$110.62	$86.65	$98.17	6.90%
2012	$94.05	$102.96	$109.39	$77.72	$91.83	-7.08%
2011	$94.88	$91.59	$113.39	$75.40	$98.83	8.15%
2010	$79.48	$81.52	$91.48	$64.78	$91.38	15.10%
2009	$61.95	$46.17	$81.03	$34.03	$79.39	78.00%
2008	$99.67	$99.64	$145.31	$30.28	$44.60	-53.52

Some mighty good yearly averages 2011-2014. Can't blame a hangover after the second day, so to speak.

Not sure we'll see a string of years like this till the 2030-2035 commodity supercycle that a few on Agriville are wagering the farms on.

Maybe we all should be demanding the PM of Canada have a bit of foresite when we cast our votes, and not someone for the sake of change.

Just saying.