Hormuz Closure Sparks Opportunity for Canada to Boost Energy Exports

The Strait of Hormuz closure has caused the largest oil supply disruption in history, with 20 million barrels per day suspended and another 10 million barrels shut in by Arab countries. This could lead to a worst-case scenario of oil at $200 per barrel if the Strait remains closed indefinitely, according to Rory Johnston.

However, this crisis also presents an opportunity for Canada to double its GDP growth and become a bigger player in global energy markets. The current high oil prices are good for Western Canadian Select producers, but bad for consumers as everything will cost more due to transportation costs.

A West Coast pipeline could vastly improve energy security for Asia and make it less dependent on Middle East oil. A $100 billion investment in 1.5 million bpd of additional pipeline capacity, including carbon capture and storage, is estimated to add $31.4 billion to national real GDP each year over the next decade.

Experts warn that an energy crisis often precedes a recession due to its inflationary effects, so it's essential for Canada to prepare for future crises by investing in redundancy and flexibility in global markets.