Last week Sinopec, which is a Chinese oil company, has announced it will invest $4.65 billion in a Canadian oil project. It isn’t the first time Sinopec is doing this. Last year, Sinopec already paid $7.5 billion to Addax Petroleum, a company with oil assets in Africa and Iraqi.
The Canadian oil project, which is called Syncrude, is the biggest project Canada has known till today. This project pumps an estimated 350,000 barrels a day, about 13% of Canada's overall oil output.
I think that this investment will certainly have some advantages, and will help to better the world economy. Some advantages could be that Syncrude will now be able to maximize its oil capacities. They probably will be able to pump even more oil than they did before, which will help to stimulate the American and even the world economy.
There is also a big negative side, not on this investment, bit on the oil industry. As we all know, oil is one of the fossil fuels. Fossil fuels play a big role in today’s world economy due to the fact that they are used so often all over the world as most machines work on it. The negative side is that these fossil fuels aren’t inexhaustible and that they all will be gone one day. Due to this, this investment might be effective today, but in 50 years time these kind of investments won’t exist anymore.
Used sources: http://news.bbc.co.uk/2/hi/8616919.stm
Niels Roels
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