China eyes Canada oil

news.yahoo.com...

Alberta is one of the few places where oil companies can invest, as the majority of the world's oil reserves are controlled by national governments. Only 22 percent of the total world reserves are accessible to private sector investment, 52 percent of which is in Alberta's oil sands, according to the Canadian Association of Petroleum Producers.

Other than the US, who else would want to take over this oil?

Canada's only major oil export market is the U.S. But with the product of oil sands and pipeline delivery to the U.S. under perennial clouds of environmental objections, and with Asian demand growing, this country wants to diversify its market, and China is eager to oblige.

Sinopec, a Chinese state-controlled oil company, has a stake in a $5.5 billion plan drawn up by the Alberta-based Enbridge company to build the Northern Gateway Pipeline from Alberta to the Pacific coast province of British Columbia. Alberta Finance Minister Lloyd Snelgrove met this month with Sinopec and CNOOC, China's other big oil company, and China's largest banks.

And here's what someone from the Asia Pacific Foundation is saying, (Sinopec is a state-controlled oil company of China if you havent noticed yet)

"There are people who still feel that one barrel of oil going from Canada to China could be one more barrel going to the United States. But those are people in the minority. It is a concern but it is not a big concern," said Wenran Jiang, a professor at the University of Alberta and a senior fellow of the Asia Pacific Foundation.

According to the article, there have been talks about the pipeline leaking.....however.....

However, Canadian Prime Minister Stephen Harper, freshly and convincingly re-elected, is an oil man who has suggested he supports building the pipeline. Also, Calgary-based Kinder Morgan has plans to expand an existing pipeline route to Vancouver so that oil can be shipped to Asia.

I have not been following this Canada/Asia/US oil pipeline, but I do wonder, what will this mean for the oil markets? Is the US going to be the loser in this one?

Well, well, well, isn't THIS interesting.

We sell it for so cheap, and then buy it back for so much. Ridiculous.
Ofcourse it's China. They are the one nation that is increasing in oil usage then any other country... At this rate there's gonna be nothing left real quick...

We better start putting real effort into develop sustainable energy asap, cause the peak of oil has all ready passed...

reply to post by buni11687


This is not surprising at all. China has also been shoppping around for developing nations for some time and buying up very large tracts of land for food. A few African countries, if I remeber right Madagascar is one of them, is where China is shopping around the most.

I am a bit surprised though they have not try to make advances with Russia first, since they also have large amounts of untapped oil in the caucus region.

Sometime I wonder to myself if china is not taking over the world by using its economy. A massive market with over 1 billion consumers. Countries are forced to play ball if they want acess to the Chinese market. All China has to do, I beleive they have done it with the US, is dangle the chinese market, suck in foreign companies, take the time to slowly dominate the foreign business through cheap labor. They continue to draw the company in more and more and then boom, China has influence if not downright control of the business in question.

Any company who attempts to extract itsetlf from the Chinese market would find it very difficult in terms of cash and operations.

I also think China is using the west to develop its own economy, but not in the normal sense. When China allows foreign investment, it usually means the foreign company builds the plant / office / warehouse / assembly line etc etc. It also means a Chinese company gets a large share in that business. By doing this China is upgrading its economy by using foreign companies to do it.

Once done its not out of the realm of possibility that China just will simply nationalize those companies and boot the foreign companies out.

Recipe for Chinese domination -
A heaping spoonfull of the worlds most populated nation.
2 cups of a massive consumer market
2 tablespoons of misdirection to get foreign investment
3 cloves of getting foreign investment to make the infrastructure upgrades
3 cups of getting foreign business into the position of needing Chinese markets, less they go bankrupt.
Put in the overn for 60 years to bake

Once done you have a powerhouse that draws in companies, and by extension the companies country of origion by making it where if China were to boot the company out, it would devestate the foreign countries economies.

anyways, just my 2 cents