Showing posts with label China invests in oilsands. Show all posts
Showing posts with label China invests in oilsands. Show all posts

Wednesday, April 28, 2010

Dirty Oil Sands Oil Not Wanted?

Eastern Canada wants the oil sands shut down, or so we are constantly told by such experts as Premier Charest, Suzuki, and every eco-nut in Canada. They do not understand the money that Ontario and Quebec industries make on the oil sands. Or maybe they do, or why would Charest be looking for Quebec investors in the oil sands?

After Quebec Premier Jean Charest publicly decried the oilsands projects last year in Copenhagen, the Quebec government is now asking entrepreneurs in the province to participate in a commercial mission in Edmonton to set up some business relationships with Alberta’s oil industry.

In a message destined to entrepreneurs from Quebec, the Ministry of Economic Development said “that the resumption of the oil sands development projects in Alberta” provides us with “some good business opportunities."

The ministry goes on to provide a list of the projects for which Quebec companies could become suppliers such as Suncor and Husky.


Well, Quebec better act fast because the Chinese are very interested in the oil sands, and businesses do not really care who invests the money. Another interesting development lately has been "green" investors who are wanting oil companies to prove their projects are green, in an attempt to delay development. Why would eco-nuts buy shares in dirty profit motivated oil companies, then protest what they are doing? Power. Lawsuits are all the rage with them as well, but as their government money starts to dry up, expect their lawsuits to dry up as well. Lawyers are expensive.

Here is an interesting development that should have Ontario and Quebec sitting up taking notice.

China's clout draws oil sands IPO

CALGARY -- China's growing influence on Canada's oil and gas sector is about to show up in a new way as an oil-sands company prepares to go public in Hong Kong, rather than on Bay Street. The move breaks from the pattern domestic energy companies and their bankers have long followed, and could have lasting implications for the Toronto Stock Exchange.

Sunshine Oilsands Ltd., which snapped up more than a million acres of oil-sands leases between May 2007 and October 2008, is ready to launch a steam-assisted gravity-drainage pilot project. The Calgary company is looking to raise hundreds of millions of dollars on Hong Kong's stock exchange, a first for a Canadian energy company that highlights just how anxious Asian investors are to grab a slice of the oil sands.


Ever notice how the TSX seems to be tied into the price of oil and gas? When the price of oil is going up, so does the TSX, oil down, TSX down. Now that is a very simple explanation, but the energy sector is a large part of the TSX, and that appears to be about to change, not to the good of Bay Street.

Imagine that, after being vilified and sued by enviros, energy companies are going to Hong Kong to raise funds. What are the chances that Chinese companies are going to go to a board meeting and demand that their investment should be "greener"? Right.

I wonder, when Sunshine Oilsands wants some special equipment developed, where are they going to go, to Ontario with their high priced union shops, or to China, who invested in their company, and can provide what they need for much lower costs?

The most interesting and hilarious result of this initiative is that the enviros can't say a thing against it. They are the ones who consider China a developing nation and cry that we should not restrict their development. It just so happens that through investment, they will be developing the oil sands. So, keep on slamming the oil sands, they are not going anywhere, and if Canadians don't want to invest in them, China and India will. Now, about that pipeline through northern BC to get our product to Asian markets, think BC will stop it or join in the profitable game?

Monday, August 31, 2009

I Can't Believe I'm Going To Agree With Him...

I didn't think I would ever see the day that I could ever agree with Martin, but it seems with this article I do. This could be an outlier, but for now I will give Martin praise for a well written column.

OTTAWA -- To lift a quip from Prime Minister Stephen Harper’s Arctic sovereignty policy and apply it to the American view of Alberta’s oil sands: use it or lose it.

The Chinese government pushed its shovel deep into Canada’s energy motherlode on Monday when it announced a $2-billion stake in a five-billion-barrel reserve of “dirty oil” that Americans increasingly find unworthy of fuelling their vehicles.

The 60% claim by PetroChina in two projects owned by Athabasca Oil Sands Corp., while small compared to the great gobs of capital pouring into oil sands expansion and extraction, are the global giant’s largest investment in Canadian energy yet.

And China usually buys into product it aims to consume.

Sources in Washington predict politicians there will not be pleased at having a massive supply of secure energy on their northern doorstep slipping under Chinese ownership.

Well, too bad.


Exactly, too bad. Why is Chinese ownership bad, but American ownership is okay? Why can American and Dutch companies buy up the oilsands and then decide the oil is too "dirty" for them, yet China's money is somehow "dirty" so they can't invest.

Alberta needs to sell it's oil and if the Obama administration thinks we "stink", then don't complain if we start selling our output to the highest buyer.

To the econuts, fight China on this one why don't you? Tell them how bad the "tarsands" are, and how they shouldn't invest in Canada's "dirty" oil. It's not like they can't get "blood" oil from other countries.

What will Quebec do now that Alberta is a have not province? If all provinces are have not, how can there be a transfer of tax dollars from one region to another? How can equalization work? Seeing how the Bloc are the federal choice in Quebec, maybe they should be made to be accountable for any equalization loses. Let the Bloc explain their policy on how Quebec can leave Canada and still survive. Let the Bloc finally start to pay the bills, instead of mouthing off about how good separation from Canada will be.

Do I want China investing in the oilsands, not really, but if the Americans won't, as they cry about how "dirty" that oil is, than okay, it won't bother me for long. Welcome China, I like your people a lot, just not your political (or lack thereof)system.

Now, didn't PM Harper warn the Americans of the consequences of opening up the free trade agreement? See what protectionism nets you Obamamations? Hey, and Saskatchewan has potash, and oil, this could get interesting.