July 25, 2012

They Snooze, We Lose

While it should come as no surprise to anyone that China is aggressively trying to tap into North American/Canadian energy sources, it boggles the mind how easy the U.S. government is making it for them (see below).

Of course Canada would look for customers elsewhere. That’s what countries and individuals do, when doing business with the U.S. becomes a bureaucratic (and political) nightmare.

So as Obama et al focus on PROCESS (and politics), Canada, China and the rest of the world are focused on RESULTS.   

Guess who’s going to lose?

Reuters  |  July 24, 2012

China-Canada oil deal shows more U.S. drilling needed: Senator

By Roberta Rampton

Canada-China deal.jpg
Chinese Prime Minister Wen Jiabao (R) and Canada's Prime Minister Stephen Harper (L) toast during a signing ceremony at the Great Hall of the People in Beijing. (LIU JIN/AFP/Getty Images; Courtesy:

(Reuters) - Republican senators will unveil new energy legislation on Thursday that will help battle a new move by China to tap North American energy resources, Senator John Hoeven said.

China's state-owned oil company CNOOC Ltd. launched a $15.1 billion takeover bid for Canada's Nexen Inc, a company with operations in the Gulf of Mexico as well as in Canada's oilsands.

Hoeven said the deal shows the United States needs to do more to aggressively develop its own resources.

"If we don't get going on it, China's already moving. He who hesitates has lost," Hoeven told Reuters.

Hoeven's bill mirrors what the Republican-controlled House of Representatives has already passed, but the legislation will face an uphill battle in the Democratic-controlled Senate.

Hoeven said he believes the CNOOC-Nexen deal is a "direct result" of President Barack Obama's January decision to delay approval of the Keystone XL pipeline, designed to bring oil from Canada's oilsands to Texas refineries.

Obama said a portion of TransCanada's pipeline needed more environmental review. Weeks later, Prime Minister Stephen Harper said Canada needed to explore more opportunities to sell oil to China.

"This is really a direct result of the administration's resistance to Keystone," Hoeven said. Hoeven represents North Dakota, where oil production is booming. The pipeline would carry some of that oil to southern refineries.

His proposed legislation would approve the pipeline, and make more federal land and offshore areas available for drilling. It would also simplify the permitting process for energy projects.

"The United States better work with Canada on Keystone and related efforts to develop the oilsands so that oil comes here. If that doesn't happen, it's going to China," he said.

Original article here.


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