Shifting Oil Sands

IBD Editorials ^ | September 1, 2009 | INVESTORS BUSINESS DAILY Staff

[Kaslin]

Energy: We balk at importing "dirty" oil from Canada, but others aren't so reluctant. Exempt as a "developing" nation from Kyoto-like agreements, China has decided to help Canada develop its energy-rich oil sands.

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The Financial Post reports that PetroChina International Investment Co. has struck a deal to buy a 60% interest in Athabasca Oil Sands Corp.'s McKay River and Dover projects for $1.9 billion.

China has been establishing energy beachheads around the world in its quest to keep its growing economy fueled. With possible conflict brewing between Israel and Iran, Beijing recognizes the need for reliable suppliers like Canada in an unstable world. It also shows no reluctance to include fossil fuels in its — what's the phrase? — all-of-the-above approach to energy.

The Chinese investment is relatively small, but Beijing likes to establish its presence in a new market and prove it's a good business partner that honors local business protocol before moving on to bigger and better things. Certainly Canada appreciates the business and the chance to break free of its fickle neighbor to the south.

PetroChina's stake translates into the control of roughly 3 billion barrels of recoverable bitumen, the tarlike mixture of crude and sand that's processed into useable products such as gasoline and jet fuel. Not coincidentally, this is the year China is expected to pass the United States as the largest car-buying nation. Few of the Chinese models have extension cords.

[Kaslin]

[Right Wing Assault]

Our government is SO stupid. As are the stupid people who elected the anti-everything-useful ones.

[spyone]

The Chinese have seen the opening and have taken it.

[Recon Dad]

Show me one other country in the world that does not take advantage of their energy resources. Our government is useless.

Drill now and drill every where! They should start lining up environmentalists against the wall.

[Former Proud Canadian]

Here is the money quote:

Canadians are miffed at federal, state and local efforts in the U.S. to bar "dirty" tar sands oil that has a larger carbon footprint than conventional crude. But as Don Martin of Canada's National Post says, "If America doesn't want to use it on environmental grounds, they're only one pipeline away from losing it to someone else."

We know you don't want to drill for your own energy. Seemingly you don't want ours because it is "dirty". We need a market.