Today it was announced that Canada is in a recession. With four consecutive months of not just stagnant growth but rather contractionary economic activity (albeit in the tens of percentage) they are now official. One major contributing factor being noted is the ‘halving’ of oil prices in the last year. With much activity in the western provinces, Canada actually ranks fifth in the world as far as oil producing nations. The U.S. is third with Russia being first. The only Middle East nation in the world’s top 5 is Saudi Arabia (right after Russia).
Thus combined, North America produces just over one fifth of the world’s production when looking at Mexico, U.S. and Canada’s contributions. It is within 4% of world production put out by the Middle East’s top 5 (Saudi Arabia, Iraq, Iran the under embargo, Kuwait, and Emirates). Production prices, China’s unmet demand amidst it’s own large production quantity (fourth world producer), geopolitical barriers and distribution obviously play a part on who can tweet the world scales when it comes to the price of oil. Yet in raw output terms, North America and the Middle East account for almost half of the world’s production with the former being quite a strong block on the world scene. Considering the early-mid 1970’s market position of North America, this is nothing to sneeze at!