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Canada's Oil and Gas Industry's Lack of Initiative to Reduce Ghg

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Running Head: CANADA'S PERVERSE SUBSIDIES TO OIL AND GAS INDUSTRY 6

Canada's Oil and Gas Industry's Lack of Initiative to Reduce GHG
Emissions Supported by Government Subsidies

CANADA'S PERVERSE SUBSIDIES TO OIL AND GAS INDUSTRY 6 The lack of reduction in greenhouse gas emissions, as required in the Kyoto Protocol, by Canada's Oil and Gas industry can be blamed on the “perverse” subsidies provided by the Canadian government. According to the Canadian Association of Petroleum Producers (CAPP), in 2011, Canada is rated as “... the third largest producer of natural gas... and the seventh largest producer of crude oil in the world.” Since Canada's Oil and Gas industry is a major supplier in the world market, government subsidies that support the exploration of new methods of extracting resources as they become more inaccessible and scarce is justifiable; but according to Ecojustice (2010) Canada supplies billions in subsidies to the Oil and Gas industry annually while greenhouse gas emissions skyrocket. This violates the requirements set out in the Kyoto Protocol as well as affects Canada's reputation in the global marketplace as organizations such as the OECD question this government practice. The government of Canada supports a global-scale industry at the expense of its taxpayers; which given the amplitude of the industry, it is highly unnecessary for such a government policy to exist. Basic statistics provided by CAPP show that the oil reserve at year-end 2006 was about 14 billion barrels whereas now, Canada's oil reserve in 2011 is a shocking 175 billion barrels with 170 extracted using current technology. The rising wealth of the oil and gas industry is unmistakably obvious even though there are many claims that the supply is quickly declining. The industry is active in 12 of Canada's 13

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