[Oilguy]

Canadian Conservative Prime Minister Stephen Harper is in the midst of an official visit to China.

His mission?

To convince Beijing’s mandarins to buy Canada’s Alberta oil sands hydrocarbon production, now that Republican Congressional overreach has effectively sidelined the Keystone XL pipeline, designed to transit the oil to U.S. Gulf of Mexico refineries, for the foreseeable future.

Harper faces an uphill struggle, as China is questioning the delays in implementing the Northern Gateway pipeline, to transit Alberta’s oil to Canada’s western coast for transshipment to China.

Complicating the picture, Harper has a weak hand of cards, and both he and the Chinese know it.

Since 1967 oil sands have been under development in Alberta, and investments there now exceed $97 billion.

Where to go?

Not unreasonably, Ottawa looked southwards, as according to the U.S. Energy Administration Canada is now the leading exporter of oil to the United States, providing 2.6 million barrels per day (mbpd) of the 9.03 mbpd the U.S. imports every day.

With the Keystone XL pipeline offline for the foreseeable future, Canada hopes that China will pick up the slack, but the slow pace of development of the $5.5 billion, 730-mile Northern Gateway pipeline has raised concerns in Beijing.

Enbridge chief executive officer Pat Daniel, accompanying Harper on his visit to Beijing said, “They’re frustrated, as we are, in the length of time it takes. They’re very anxious to diversify their supply, they’re very dependent on the Middle East for crude. (Canada) seems like the perfect match that should last a long time, but if you don’t move it along, people do lose interest. We don’t have forever. The fundamentals in the business can change and you must take advantage of opportunities if and when they present themselves.”

But Harper and Daniel are in a weak negotiating position, and they know it.
Full article at: http://oilprice.com/Energy/Crude-Oil/Ca ... China.html

[Fishman]

now that Republican Congressional overreach has effectively sidelined the Keystone XL pipeline,

Wow, now that is one serious twist of the truth. You must work for one of Obama's "Truth Teams" What's you study book, Alinsky or Goebbels?

[rockdoc123]

As usual Daly puts forth a diatribe full of speculation (how would he know what was said between the Chinese Premier and Canadian Prime Minister?...answer he wouldn't). As well he shows very little understanding of the Chinese mentality if he thinks they will be swayed by any sort of environmental lobby or NGO's complaining about First nations human rights issues. These are issues that do not appear in the Chinese book of "how to do business and not bother making friends"...just ask anyone in the numerous countries in Africa where the various Chinese companies operate.
All they care about is securing a supply at a reasonable price.
My understanding is that at least one of the First nations communities are being actively embraced as a partner in the development which will likely go a long way to making NGO arguments in this regards a non-issue.
And the Canadian government is not doing anything new in terms of limiting the ability of special interest groups to influence the process. In Peru a few years ago a concerned Garcia government passed a law which required all NGO's to report all of their investments in the country (as oil and mining companies are required to do) as a means to eliminate (or at least limit) the payments being made to various indigenous peoples to protest development.

[Plantagenet]

After Obama blocked construction of the pipeline that would carry Alberta oil to the US, what did you expect Canada to do?

Of course they are going to try to find other buyers for their oil.

[Serial_Worrier]

Screw him!

[Cog]

I used to think that Obama's ban on the Keystone was simply election year politics. But I now think Obama is actively trying to destroy the United States.

[newman1979]

The pipeline was passed by the Senate and the Republican house rejected the bill, so it was the Republicans who wanted to have it my way or no way who have stopped the pipeline. While it is now being studied by the Administration, the Administration is reminding the Republicans that compromise is essential in politics and it is a short worm that doesn't turn.
Moving the oil by railroads would add a few dollars a barrel. Going to China, starting to diversify a little late, starting by rail now would put pressure on the price paid for syncrude in the US IMO.

[kiwichick]

cog

you seem to have the current president confused with george bush 1 and 2 , reagan , and nixon

[Plantagenet]

Moving the oil by railroads would add a few dollars a barrel.

And Obama's wealthy crony Warren Buffet owns the railroad and would get the few dollars per barrel.
Why, in heavens name, do you want everybody in the midwest USA to pay Warren Buffett a few dollars extra for every barrel of oil the US imports from Alberta?


Didja deep-six that pipeline so the oil has to go on MY railroad like I told ya to do?

[newman1979]

If a Canadian syncrude producer could get $20-30 a barrel more for their oil, they would be happy to pay $3 a barrel for getting the oil to Port Arthur. The environmental impact would also be less. This scheme could be in place much sooner than a pipeline.
Drudge is really a poor source for facts.

[Lore]

It has already been established that Canada is looking to diversify its export market to get the highest price for its crude. The XL pipeline is an export oil line, meaning off the North American continent.

[Plantagenet]

If a Canadian syncrude producer could get $20-30 a barrel more for their oil, they would be happy to pay $3 a barrel for getting the oil [transported by train]

What a silly fantasy. You really don't understand how the oil market works. The producer won't pay more if Canadian oil is moved by train-----the US consumer will pay more.

Your idea that the US consumer should pay $3 extra for every barrel of oil so Warren Buffet can make more money from his train business is silly. Oil can be transported from Canada to the USA much more cheaply by pipeline-----if only Obama and the democrats would allow the Keystone Pipeline to be built.

[Lore]

Oil can be transported from Canada to the USA much more cheaply by pipeline-----if only Obama and the democrats would allow the Keystone Pipeline to be built.

Why, so that oil can be shipped overseas? While we're left to clean up the messes with our tax dollars.

I also see you keep trying to push the 20,000 job nonsense.

[Cog]

How many people is Solyndra employing?

[Lore]

How many people is Solyndra employing?

The CEA estimates that the American Recovery and Reinvestment Act contributed to the creation or preservation of 827,000 clean energy jobs nationwide through the fourth quarter of 2012. More than 140,000 of these green jobs were reported in just the first quarter of 2010, and nearly 200,000 of the estimated 2.5 to 3.6 million ARRA-related jobs reported in the second quarter of 2010 were in the renewable energy sector.
http://www.greenlaborjournal.org/affili ... bs-created

In the case of solar panels, here is a good example of where the free enterprise and open market system exhibits a complete fail. While we use to produce nearly 80% of panels in the US just 10 years ago, we now have less then 20% share of that market. It would seem the Chinease government has targeted that product as a must own future technology. Looks like their politicians are greater entrepreneurial visionaries then ours.