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China Has Its Eye On Canada's Oil
IBD Editorials ^ | June 28, 2011 | Staff

Posted on 06/28/2011 4:59:25 PM PDT by Kaslin

Energy: While the U.S. dithers with concerns about "dirty oil" from Alberta's rich tar sands, energy-hungry China makes Ottawa an offer it might not refuse. Memo to Washington: Pipelines can run west as well as south.

When President Obama pledged to wean us off foreign oil, we hoped he didn't mean our friendly ally to the north, Canada. Granted, it doesn't have beaches like Rio, where we're helping the Brazilians drill offshore, but we had hopes nonetheless.

Together, the U.S. and Canada have enough oil and natural gas locked up in shale formations, tar sands, Alaska, the Canadian Arctic and the Outer Continental Shelf to make OPEC pound sand. But we won't drill for ours and apparently, we don't want Canada's.

With more than 170 billion barrels, Alberta has the world's third-largest oil reserves, behind only Saudi Arabia and Venezuela and ahead of Russia and Iran. Daily production of 1.5 million barrels from the oil sands is expected to nearly triple to 3.7 million by 2025. The only question is, will this crude be flowing south to U.S. refineries or west for export to China?

At issue is the Keystone XL pipeline, parts of which have already been built, that would bring Alberta oil to Texas Gulf Coast refineries. The pipeline also could transport oil extracted from shale formations in the Rocky Mountain West.

The U.S. Geological Survey estimates the region, dubbed the Persia of the West, may hold more than 1.5 trillion barrels of oil, six times the proven reserves of Saudi Arabia, and enough to meet U.S. oil needs for the next two centuries.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Editorial; Foreign Affairs
KEYWORDS: alberta; default; economy; globalism; oil

1 posted on 06/28/2011 4:59:26 PM PDT by Kaslin
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To: Kaslin
Drill, baby, drill.

In the US and offshore.

2 posted on 06/28/2011 5:00:52 PM PDT by Paladin2
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To: Paladin2

If Sarah Palin doesn’t make President, we sure could use her as Secretary of the Interior.


3 posted on 06/28/2011 5:12:22 PM PDT by cradle of freedom (Long live the Republic !)
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To: Paladin2

Oh we don’t need to drill. 0bama just released 30 million gallon of oil from the strategic oil reserve. That ought to last until hell freezes over


4 posted on 06/28/2011 5:14:40 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

I am sure that Obama has no problem with this. Afterall, all our goods are made in China anyway, so they are the ones who need the oil, not us.


5 posted on 06/28/2011 5:16:51 PM PDT by Brilliant
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To: Kaslin
My tactical reserve has about 5 weeks to go to empty. (last filled (to 1/2 capacity) in April)

With prices dropping I'll likely start to reload to get through hurricane season.

6 posted on 06/28/2011 5:17:27 PM PDT by Paladin2
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To: cradle of freedom

She would make sure we would not have to be dependent on foreign oil


7 posted on 06/28/2011 5:17:29 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

Irony and sarcasm well said. Two million more daily barrels for the whole world for 30 days (near the same time period before our deadline for default, big spending cuts or more monetization). As we know, that’s not much. The world uses nearly 85 million barrels per day. Consumption in China, India and other countries is increasing.


8 posted on 06/28/2011 5:24:37 PM PDT by familyop ("Dry land is not just our destination, it is our destiny!" --"Deacon," "Waterworld")
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To: Brilliant

Yeah, but I was being sarcastic. It was estimated the oil from the reserve, which should never have been released, to only last for 2 days


9 posted on 06/28/2011 5:30:41 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin

The oil from the reserve is priced higher than spot crude. Good luck selling it...


10 posted on 06/28/2011 5:32:59 PM PDT by Eric in the Ozarks (Eh ?)
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To: Kaslin

Can we export Unions, EPA, Osha and the IRS to China?


11 posted on 06/28/2011 5:40:19 PM PDT by screaminsunshine (Socialism...Easier said than done.)
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To: screaminsunshine

I am all for it


12 posted on 06/28/2011 5:45:25 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: familyop

For 30 days? How about 2 days and this only here in the US


13 posted on 06/28/2011 5:47:02 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Paladin

Post# 9 was meant for you.


14 posted on 06/28/2011 5:49:23 PM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: Kaslin
One source:

Oil Tumbles to Four-Month Low as IEA Members to Tap Reserves
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/22/bloomberg1376-LN8W1T0UQVI901-4LRCSHVEGPPL5BAEUA48LGPSDJ.DTL

[Bloomberg title and link only, because no content is allowed to be posted on FR.]
15 posted on 06/28/2011 6:21:11 PM PDT by familyop (Rome was burned in a day--twice.)
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To: Kaslin
Wean Obama off the banana pellets,we are fine with our OIL.
16 posted on 06/28/2011 6:35:52 PM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: Kaslin

Rumor has it that the red chi coms are dumping money into exploration in Wyoming too. A field stretching north from Cheyenne to Casper, Newcastle, Lusk and I think Fall River county Sd. I worked on a rig in the very corner of Sd. A mile from nebraska and about three miles from who.
We hit natural gas.


17 posted on 06/28/2011 8:32:01 PM PDT by South Dakota (shut up and drill)
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To: South Dakota
They already know what we are scared to admit, we have always the most untapped sweet crude easily available anywhere..yes, that is a period
18 posted on 06/29/2011 3:43:22 AM PDT by de.rm ('Most people never believe anything you tell them unless it isn't true."-Groucho Marx)
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To: screaminsunshine
Can we export Unions, EPA, Osha and the IRS to China?

Only if you want a world war before lunch on Friday.

19 posted on 06/29/2011 4:30:26 AM PDT by lentulusgracchus (Concealed carry is a pro-life position.)
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To: South Dakota
Rumor has it that the red chi coms are dumping money into exploration in Wyoming too.

Remember that about 12 years ago, the Politburo ordered CNOOC ("Snook", China National Offshore Oil Corp.) to make an offer for Union Cal (that's Unocal/Union 76, Union of California). People got very uptight and said, ahhh, hell, they're going to cart off Unocal's Gulf Coast production and leave us with shortages and bidding wars here in the States. So the Administration said, ummm, no dice, and queered the deal.

What CNOOC actually wanted to do was a crude-swapping deal. Mostly they wanted Unocal's fairly recent Gulf of Siam reserve adds, which were impressive, and they were going to swap the Gulf Coast and other Stateside production for Indonesian and Middle East cargoes. It was actually a pretty smart play and would have saved them a bundle on transportation charges. But after the then-recent experience with Japanese taking out prime RE all over the country, nobody wanted to see another rush on US assets. Especially an oil company.

20 posted on 06/29/2011 4:37:34 AM PDT by lentulusgracchus (Concealed carry is a pro-life position.)
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To: lentulusgracchus
Erratum to my last:

The CNOOC offer to buy, and the merger of Union Cal/Unocal into Chevron-Texaco, occurred in 2004-2005.

21 posted on 06/29/2011 4:55:33 AM PDT by lentulusgracchus (Concealed carry is a pro-life position.)
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