In the currency market, the single biggest beneficiary of rising oil prices is the Canadian Dollar. As of January 2004, Canada's total proven crude oil reserves stood at 178.9 billion barrels trailing only Saudi Arabia, which holds the most proven crude oil reserves in the world. However, the vast majority of Canadian oil inventory is trapped in the sands of the Alberta province.
Some analysts estimate that the region could contain as much as 300 Billion barrels – enough crude to supply US needs for over 40 years. Until recently, the cost of extraction have been prohibitive, reaching as high as $15-$20 per barrel because of the need for massive filtration equipment. However, recent advances in extraction technology have lowered the price to only $9 per barrel making the Alberta Oil Sands venture highly competitive in the present market prices.
If oil reaches $60 per barrel, Canada which is already the biggest exporter of oil to the United States, will experience a tremendous boost to its economy. The energy sector comprises 8% of the Canadian GDP while its indirect contribution to the Canadian economy is far greater. Therefore, if oil rises the CAD is likely to closely follow.
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