Mexico is planning on handing over its state run oil industry to private investment, which one business professor says could negatively affect Canadian profits.
Professor Bob Schulz from the U of C’s Haskayne School of Business says this means foreign companies can be a part of production increases.
“So the foreign companies are going to put an investment in, increase the production, and then do profit sharing in terms of what the production increases are,” he said.
He also says it could hurt Canada’s oil industry, because the US is always looking for competitors.
“What happens though is that if there’s more supply available in North America, then that could have a downward pressure on the net price that Canadians get for our oil.”
Schulz says the approval of the Keystone XL pipeline would be a big way to combat that from happening.
August 13, 2013
