HUMBOLDT — As prices surge at the pump, Humboldt and District Chamber of Commerce’s executive director Brent Fitzpatrick said consumers will see the price impact on the shelves.
“Without a doubt there’s going to be an impact on the local economy as there is universally,” Fitzpatrick said.
“It’s going to cost more to get goods and services to our area, it’s going to cost more to deliver them. Just going for a visit somewhere is going to cost you more due to the extraordinary price for the fuel, and it almost goes without saying it’s going to be an interesting year this year coming up.”
Is Russian invasion a factor?
Canada is a net exporter of crude oil, meaning it exports more than it imports each year. Canada does not currently import crude oil from Russia, and has not since 2019. In 2019 it imported three per cent of its total crude oil from Russia.
Canadian oil production increased over the past year and has reached pre-pandemic levels.
In 2020, Russia produced 10.50 million barrels per day (Mb/d), amounting to 11 per cent of the world’s share as the world’s third largest supplier. Following Russia, Canada took fourth with 5.23 Mb/d, amounting to six per cent of the world’s share.
Imports of crude oil to Canada decreased by 20 per in 2020, from 693 Mb/d in 2019 to 555 Mb/d.
The United States continues to be the largest source of Canada’s imported crude oil and in 2020, 77 per cent of Canada’s oil imports came from the U.S. compared to 72 per cent in 2019.
On Feb. 28, the federal government announced a ban on crude oil imports from Russia.
“President Putin’s actions blatantly violate international law and threaten international peace and security. In response, we intend to ban crude oil imports from Russia,” said Jonathan Wilkinson, Canada’s minister of natural resources. “We continue to do everything we can to support Ukraine and are united with allies in holding Russia to account for its unprovoked and unjustified invasion.”
The federal government said it will continue to monitor the supply situation closely with partner International Energy Agency countries and, if necessary, are prepared to act jointly to maintain security of supply in energy markets.
