Out of all of this....Canada could lose [View all]

With the overthrow of Venezuela Maduro, the US will bring in assets from the big oil companies to get production back. Despite having the largest reserves, they pump less than 1 million barrels a day of oil. 1% of the global supply. Their infrastructure was poorly managed and wells allowed to decay.

Canada has been looking for different homes for its high sulfur oil, but most global processing exists in the US as it was built for Venezuela and Canadian low quality oil. One of the last motivations of the US to utilize Canadian oil was to max out facilities designed for this oil.

With Venezuela capacity likely to come back online, low cost/high sulfur oil will be back headed to the US, and will likely displace Canadian oil without further reductions below market. This is a further kick to Carney and his inability to lock in a trade deal for oil, and will likely further handicap the Canadian economy.