Tar Sands Expansions Would Reduce US Dependence On OPEC

Saudi officials sat stone-faced as Chavez extolled the Cuban revolution and exhorted his OPEC colleagues to take a hard line against consuming nations, especially the United States. Contradicting one of the basic themes of the summit, Chavez said, "It's not OPEC's role to guarantee supply ... OPEC must change and become a much stronger player in the geopolitical domain." All week Saudis have taken pains to portray the kingdom as a reliable supplier with the slogan "providing petroleum, promoting prosperity and protecting the planet." Chavez's comments appeared to earn a rebuke from Saudi King Abdullah, who said it is OPEC's responsibility to safeguard the world economy. "The prosperity of the world is common and shared," he said, calling for "bridges and dialogue" between producing and consuming nations. "Oil shouldn't be a tool for conflict, it should be a tool for development," he said. "Our organization has consistently upheld these objectives." In concluding his remarks, Abdullah committed $300 million to fund climate change research, including technologies to capture and sequester carbon dioxide, which has been pegged as a cause of global warming. Likewise, OPEC's secretary general, Abdalla Salem el-Badri urged "transparency and predictability" in the cartel's policies and said OPEC's role ought to be "market stabilization." He sought to reassure consumers that "petroleum resources in member countries are sufficient to meet increased demand." The comments underscored the divisions between OPEC's hawks led by Chavez and the desire of Saudi officials to avoid a backlash that would reduce demand for OPEC oil in the world's largest consumer, the United States, which uses a quarter of the world's oil -- or some 21 million barrels a day. As a growing supplier, Canada has been seen as a way for the United States to lessen its dependence on imported oil from both Venezuela and the Middle East. Canada produces a quality of heavy oil that is similar to Venezuela's Orinoco belt, and supplies from Alberta's oilsands have steadily been trickling south. Earlier this year, the Spearhead pipeline began delivering heavy oil to Cushing, Okla., while construction of TransCanada Corp.'s Spearhead has been approved to send oilsands output to the Gulf Coast. ... http://www.canada.com/victoriatimescolonist/news/story.html?id=6b7a61fb-55c2-44c8-8cb9-3efe10271764&k=87096

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