Why is Russia selling Natural Gas to Canada?

hermit · Heavy Crude Joined: May 13, 2008 Posts: 182

Aparrently Russia and Canada have just signed a deal for Canada to buy NG from the Shtochmann field in the Berents sea.
link

This doesn't make any sense to me, and I'm hoping that the more knowledgeable can help me understand.

- Why is a NG-rich nation like Canada importing NG?

- Why is Russia shipping LNG halfway across the world to sell it, instead of selling to europe/asia?

- How can this make economic sense for either party?

?? Help me understand .... ??

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1971

NAFTA.

Canada is America's Natural Gas bitch, and must sell a set volume to the U.S.
_________________
Massive Human Dieoff must occur as a result of Peak Oil. Many more than half will die. It will occur everywhere, including where you live. If you fail to recognize this, then your odds of living move toward the "going to die" group.

dissident · Heavy Crude Joined: Apr 08, 2006 Posts: 464

Don't worry, neocon Harper will scuttle this deal as a sign of solidarity with his pal Saakashvili.

Dezakin · Light Sweet Crude Joined: Feb 09, 2005 Posts: 1392

Thats not how NAFTA works. NAFTA requries that there aren't import/export quotas that create artificial surplus within Canada.

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1971

Here is all you need to know . . .

Canada is currently producing bout 6.5 TCF.

Here is the graph of how much of that is sucked up by the Empire . . .

There are several posters on this message board who genuinely love their native country of Canada and sincerely believe that Canada isn't just a resource being used by the Empire, with full complicity of those nominally in charge of Canada.

I feel bad for those people.

There was a time when I was one of them. Then you get older. You start to think about things. You notice abuses that your country is responsible for, and you wonder more. You start to cringe every time you hear programmed sheep-speak like, "freedom is not free" and "America is the greatest country that ever existed."

You read. You find out that U.S. agents assassinated Allende. Caused a Coup in Iran. Tested pathogens on black soldiers. Torture and withhold Habeus from humans.

If you are Canadian and under the impression that Canada is a free country that isn't completely under the control of the same people who are driving the U.S. right off a cliff, you need to take a hard look at this thread, which I'm certain will expand from here.

Why is it that a country would sell 65% of its natural gas to its neighbor and then spend beaucoup loonies to pay a country on the other side of the world to liquefy their natural gas and bring it to them.

The answer is really very simple, and if you try to find a complicated answer to it, you're kidding yourself to try to maintain your personal patriotic delusion.

The answer is that Canada has been bought and sold by the same people who have bought and sold America.

You'll see it eventually. There'll be riots at some point, and Canadians will want an answer to the question, "why don't we simply stop selling natural gas to the United States?"
_________________
Massive Human Dieoff must occur as a result of Peak Oil. Many more than half will die. It will occur everywhere, including where you live. If you fail to recognize this, then your odds of living move toward the "going to die" group.

Dezakin · Light Sweet Crude Joined: Feb 09, 2005 Posts: 1392

You might as well suggest that Alaska is being sucked dry by New York.

Roccland · Peak Oil Prophet Joined: Jun 16, 2007 Posts: 1696

Canada is about to fall off the natural gas cliff.

Chart (huge)

It’s well known that Canadian conventional gas peaked around 2001, but according to a continuing trends prediction case from the National Energy Board, it doesn’t appear as if unconventional gas will be playing a big part, at least compared against 2001 peak production levels. Below I summarize some predictions for future production of Canadian natural gas and try to estimate how much of Canada's natural gas will be left over for regular Canadian citizens.
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500 MPH into a brick wall - me

seahorse2 · Expert Joined: Oct 18, 2004 Posts: 1964

Canada also imports oil.

Canada energy issues

Go figure that!

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1971

Roccland · Peak Oil Prophet Joined: Jun 16, 2007 Posts: 1696

And at about 125 cubic feet of NG/barrel of tar sand...

That is gonna be a real trick...
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500 MPH into a brick wall - me

Ferretlover

Why is Russia selling Natural Gas to Canada?
a) for the money
b) so that Russia can cut them off if they raise a stink about Russia drilling in the Arctic.
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"RRrrruuuunnnn!!!" ~Apocalypto

Cochise · Tar Sands Joined: Jun 13, 2008 Posts: 53 Location: LA

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1971

WildRose · Light Sweet Crude Joined: Jun 21, 2006 Posts: 1084

Yep. Canada must continue to sell the same percentage of its NG production to the US.

Anyone know what the rate of oil production from the tar sands is right now? Has it increased much lately? That would be part of it, I'm sure, as so much NG is needed for bitumen production.

Also, expect the trend (NG coming from Russia) to continue, as upgrader alley near Edmonton, scheduled to be developed over the next several years, will require twice as much natural gas to refine the bitumen as is needed to heat all the households in Edmonton during our long winter months.

http://www.pembina.org/media-release/1656

Upgrader Alley - Gotta love it!

fletch_961 · Tar Sands Joined: Jan 31, 2008 Posts: 87