Tuesday, March 24, 2009

Suncor - Petro-Canada Merger

The merger between Suncor and Petro-Canada has the potential to unleash unprecedented oil reserves out of the Alberta Oilsands. An abundant supply may have the effect of reducing prices at the pumps in the same way that a shortage of supply increases pump prices. Further, what does it matter what the price is at the pumps if there is no supply to meet the demand? Add to this the economic benefit of Canada exporting oil and gas to the US. When all is in and done the merger may benefit Canadians in the long term.