The Macro Environment: Current Business And Economics Factors
NAFTA Agreement: Changes under new agreement USMCA- United States-Mexico-Canada Agreement in oil and gas sector- there will be no tax on export of Alberta oil across US borders same as in old NAFTA deal. But if the Diluent, which is thinning agent, included over 40%of the total shipment f oil then it subjected to tax. Zero-tariff on energy products traded between US, Mexico, Canada according new NAFTA deal.
- Capital investment in canada’s oil and gas industry:
- Prices: Below chart is showing the change in oil prices over 5 years. Till August 2018, WTI- 68. 06($US/bbl)- 41. 7% higher than it was a year earlier and WCS-48. 55($US/bbl)- 26. 1% higher than it was a year earlier and difference between WTI and WCS is -19. 51. It is anticipated that prices will rise in the second half of the year as the US economy strengthens and demand spikes. Legal and Political Factors
- Pipelines issue: Three major projects of energy infrastructure which is Trans Mountain, Keystone XL and Line 3 are still in the spotlight in 2018. Canada’s Government and pipeline supporters want this project as they believe this is good for Canadian Economy and generate employment in oil industry. But the opposition including jurisdictions, environmentalists or indigenous groups they are more concerned about climate change issue and possibilities of oil spills. Pipelines will continue to be a lightning rod for protesters in 2018.
- Drilling : - A deep- rated drilling rig, which is composed of much heavier, larger and stronger equipment might be used to drill holes 5,000m deep. While working on different machines in oil industry, there is a chance of hand and finger injuries such as crushing, pinching, cut and puncture which are serious injuries. Special kind of gloves are required for the safety of worker. Back-of-the-hand impact protection, arc flash protection, and most commonly, good grip in oil (oil resistant leather glove), constitute the main features of the best oil and gas hand protection.
- Refining: In the process of refining, which starts with heating crude oil, different kind of Gloves are required to protect the hands from heat. Leather drivers or mechanics style gloves are greater for oil delivery application in the oilfield industry. Many have anti-impact thermos backing, some with high grip palms or high-visibility coloring and some with winter lining like fleece or thinsulate. In the future, people hired into the energy industry are going to need more than just a "hard hat and a heartbeat". Advances in technology will require educated employees who know how to work with it.
- Automation and innovation: Advances will be made in technology which results in fewer people needed to operate oil rigs. Driverless trucks are coming at mines of Suncor Energy in northern Alberta which expecting to eliminate about 400 jobs. The robot trucks are coming. Suncor has been testing driverless vehicles at its mines in northern Alberta.
- Use of drones: Using drones to inspect offshore platforms, which reduces the workers’ exposure to hazardous tasks. This will require less manpower, which ultimately reduces the use of gloves and this affect the glove company as well.
For the performance and safety demands of oilfield pipelines, the anti-impact mechanics or leather driver’s gloves are excellent choice. It helps to secure worker’s hand from crushing, pinching, cuts or punctures. Some of these gloves have water or oil resistance and some have winter linings like fleece. Technological FactorsThere are many technologies used in oil and gas industry for drilling rigs, snubbing rigs, exploration, production, refinery etc.
Social and Environmental issues
The major environmental issue in oil and gas industry is that Canada’s oil industry is the single largest source of carbon emissions according to Environment Canada. It accounts for a quarter of Canada’s greenhouse emissions. The most carbon intensive is the oilsands. It is target by Environmentalists for its emissions-intensive extraction process and destructive land use. The industry is trying to reduce the carbon intensity, but the overall impact continues to grow.
Pipelines: This is the major debateable issue in Canada whether new pipelines should be built or not. Some are in favour of this projects, but some are against it because of the concerns which include climate change, pipeline leaks, First Nations rights and oil tanker spills. This issue may affect the sale of the gloves, as gloves are required for the construction of these pipelines. Current trends within the industry
