China Emerging as U.S. Rival for Canada's Oil

nytimes.com ^ | December 23, 2004 | SIMON ROMERO

[Destro]

Why would Canada want to sell oil to America anyway's? We are punk broke debtors.

The wonders of a weak dollar and trade deficits when it comes to trade!

There since there is little or no manufacturing left in America means a decline in demand for oil and gas. Sure Americans need gas and oil for their homes and cars but they can't handle the higher priced stuff for domestic consumption.

China on the other hands has the manufacturing based market for more oil, even higher priced oil like oil from sand-tar because that higher priced cost becomes affordable via economy of scale mass production of end pruducts.

[Arkie2]

Just one more reason to drill ANWAR and the Gulf Coast off Florida.

[finnigan2]

Despite the length of this story, China was, is, and always will be only a bit player in Canada's oil sector. Why they even bother I don't know - China sits right beside Russia's enormous oil fields and, as we know, China and Russia have been sweet on each other for at least the past year.
However, one thing is true. There is more oil "trapped" in the Alberta oil sands than all the proven oil reserves in the middle east put together.
Very expensive to put into production, very expensive to process, the oil sands nevertheless would permit the US to survive without oil from any other outside source if they chose to invest in it on a crash program basis.

[Destro]

America can't afford the sandy tar oil - costs too much to tank up just to heat homes and drive -but its affordable if used for a manufacturing base. That is the point.

[rellimpank]

--and to get on with nuclear and domestic coal for electricity generation---

[marron]

This article points out something very important, which is that China's modernizing economy is having an impact on the world's markets. Fuel has been going up, but not only fuel. Steel has doubled in price thanks mostly to Chinese growth.

So people who have been worried that driving their SUV's was driving up the cost of gasoline can relax. The couple of mpg difference is nothing compared to a billion new consumers on the market.

But the writer knows little about oil and understands it less. At one time most of the world's oil company's were national, and Americans were the few to venture out into foreign fields. This is the source of much of the paranoia about oil companies on the part of people who couldn't understand the idea of basic resources being owned by private companies. That has changed, however, and Americans compete against French, Spanish, Italian, Canadian and nowadays Chinese companies. Actually there are a whole host of players from countries that you wouldn't even think of.

So we aren't going to be disturbed about competing (and partnering) with Chinese companies.

The deals may create unease for the first time since the 1970's in the traditionally smooth energy relationship between the United States and Canada.

Thats silly. Its a market.

China, which has surpassed Japan as the second-largest market for oil, flexes its muscle in attempts to secure oil,

I don't think Chinese Marines are going to be storming ashore. They are going to use dollars, which is fine.

"Watch the Americans have a hissy fit if a Chinese incursion materializes," Claudia Cattaneo

Uh, no. Its a market.

[Destro]

Military intervention? No! But you are incorrect in that China partners with its corporations - we are seeing a reemergence of corporatist govt as developed by Mussolini.

[Destro]

PS: This also points to a decline in American power were American military force can not be applied.

[GOP_1900AD]

The West has had two times in history when we could have played from strength and ensured that places like China or any other usurpers would have been hobbled for thousands of years. The first period was from 1400 - 1750. The second was just after WW2. This latter was to me the most interesting. For example, imagine that, instead of our obsession with diplomacy and our fostering of the UN at the time, we had adopted, as our objectives, the complete destruction of insurgent Maoist Communism in Asia, and, the aggressive roll back of Soviet Communism in all quarters. We in the US alone had nuclear weapons. We in the US alone had a massive, carrier based global navy. We in the US alone had war experience but not a war ravaged home land. But we squandered our best opportunity to preempt the Geopolitical goals of orientalists. Now, as a result, we face Islamism and resurgent Communism wearing a Fascist cloak. This is going to be tough one to win, if we do so at all. I guess the real question is, will we even get serious about winning, as we have yet to do so.

[MD_Willington_1976]

There has been talk/speculation that a parallel rail system and a southern pipline will be constructed in BC connecting Alaska straight through BC to the USA. There is also a very large gas and oil field off the coast of BC but the government has been relectant to persue extraction. It would be a boom in BC's economy if they went ahead and started oil extraction off the coast.

[finnigan2]

"- costs too much to tank up just to heat homes and drive"

- I think the article quotes a production cost of about $30. per barrel and with the world price at between 40 and 45, it is profitable to extract. More to the point however, is that it would make the US immune from middle eastern blackmail which is always a danger. Also, the US could afford to squeeze Mexico and Venezuela should they start to get cocky about having the US economy, "over a barrel" so to speak.

[slapshot]

Invade Alberta!!!!!!!!! Problem solved.

[Destro]

the US does not buy oil - individuals do.

[Destro]

What most people don't understand about China is that she is not historically speaking a land conquering empire. Outside of what China considers China's natural frontiers the historical model the Chinese follow is the tribute system. What many Americans don't get is that China is not seeking power to gain real estate but rather the power to influence and control other nations and bend them to her will.

[finnigan2]

"the US does not buy oil - individuals do."

- And the US strategic reserves are bought by......???

[Willie Green]

Just one more reason to drill ANWAR and the Gulf Coast off Florida.

To ship it to China to pay for our trade deficit?

[investigateworld]

p

[Quix]

DEAR ONES,

Here's a computer slide show type presentation that shows a lot of Chinese characters and how Biblical history is embedded in them. It makes a great CHRISTmas card. LUB,

http://www.wbschool.org/chinesecharacters.htm

[Destro]

US strategic reserves should never be sold to the public to lower prices.

[finnigan2]

"US strategic reserves should never be sold to the public to lower prices."

- Hmmmm. In your first post you spoke of "purchases", now you've switched to "sales". Changing the subject and moving on only works for Democrats.