China Eyeing Oil Sands Deals Of Any Size

Posted on Saturday, April 16 at 15:36 by Perturbed
Mr. Hou was speaking to reporters late Wednesday after a presentation in Calgary that was organized by Calgary investment firm ARC Financial Corp. and the law firm Heenan Blaikie LLP. During his speech, Mr. Hou said the $150-million invested by China National Offshore Oil Corp. (CNOOC) -- China's international energy company -- in oil sands upstart MEG Energy Corp. was "probably" going to be followed by more deals. He said he hoped a second deal will be bigger than the first and "the third one will be much bigger." Yesterday, pipeline company Enbridge Inc. announced a preliminary deal with PetroChina Co. Ltd. for half the supply on the proposed $2.5-billion Gateway line, which is supposed to move 400,000 barrels of oil sands crude to the West Coast for export. Chinese companies have made inquiries about the oil sands for several years and last year visited Alberta with a long list of detailed questions, leading to months of speculation about what sort of moves the giant and increasingly powerful country would make. Enbridge's connection with China had been widely expected. Mr. Hou said securing oil supplies for his energy-hungry country is China's chief goal. "The more sources of import, the more safe" those supplies are, Mr. Hou said. He added that prices for assets in North America are "slightly high," but the continent's political stability and strong rule-of-law are "one of the most important factors for [China's] investment decisions." China, however, has invested throughout the world and has close connections with countries such as Iran and Sudan. Mr. Hou said China was in dealings with 70 foreign oil companies in 18 countries, as of last December. CNOOC said it invested in MEG for the small company's long-term growth outlook and because of the chance to learn more about oil-recovery technology, which could also be used in China. Mr. Hou said China is in general looking to Canada for both reserves of oil and technology sharing. During his speech, Mr. Hou said China is predicting an increasing gap between its oil demand and domestic production through at least 2020, underscoring the country's need to look for more sources of crude beyond its borders. Up until 1993, China produced enough oil to supply its own needs..... www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050415/RSINOPEC15/TPBusiness/TopStories

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Comments

  1. Sun Apr 17, 2005 12:25 am
    Good ol Canada,just give everything away.

  2. by N Say
    Sun Apr 17, 2005 1:13 am
    one more time, in chinese Canada means "big land for taking" LOL

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    "George Bush has declared the war on terrorism to be the cause of his generation. The cause of Canadian sovereignty will be ours." - John Godfrey, MP for Don Va

  3. Sun Apr 17, 2005 2:22 am
    N Say, are you serious?

  4. by N Say
    Sun Apr 17, 2005 2:47 am
    I found that out from a guy I know who took a course in chinese last fall. It's somehting like "ga na dai", which means pretty much what I said. Either that or "big land to take".

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    "George Bush has declared the war on terrorism to be the cause of his generation. The cause of Canadian sovereignty will be ours." - John Godfrey, MP for Don Va

  5. by RPW
    Sun Apr 17, 2005 3:04 am
    So it's either the Chinese or the Yankees. I will bet on the Chinese (more staying power) How come then, we are boarding the wrong train.........?

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    RickW

  6. by avatar Spud
    Sun Apr 17, 2005 3:34 am
    Either this country is stupid and we deserve this garbage,or it is trying to kill itself.How the public tolerates this stuff is beyond me.

  7. by N Say
    Sun Apr 17, 2005 4:58 am
    I don't think the public does tolerate it. It's just that there is really no credible alternative to the current situation. Parties like NDP or whatever would be an alternative, but they're not viable because of our system. The Liberals & Conservatives are both viable, but not alternatives.

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    "George Bush has declared the war on terrorism to be the cause of his generation. The cause of Canadian sovereignty will be ours." - John Godfrey, MP for Don Va

  8. Sun Apr 17, 2005 7:22 pm
    Our various levels of government, acting like owners of a brothel, say, "come and get it!" Frankly, I think Canada shouldn`t be aligning itself with any 'superpower.' We should build a few nukes and tell the parasites to back off!!

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    Dave Ruston

  9. Mon Apr 18, 2005 3:31 am
    Coincidence, but funny.

  10. Mon Apr 18, 2005 3:46 am
    I agree....

  11. by N Say
    Mon Apr 18, 2005 6:07 am
    Well I don't think we need any nukes, Sweden & Norway have never needed any. There's some Swedish saying that goes somethng like "no adventure, no conquest, but plenty of arms for self defence". That's probably all we need.

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    "George Bush has declared the war on terrorism to be the cause of his generation. The cause of Canadian sovereignty will be ours." - John Godfrey, MP for Don Va

  12. Mon Apr 18, 2005 10:26 am
    In MHO, this is a smart move for China. They are buying hard assets with their surplus US dollar reserves before the US dollar tanks. It lowers their US dollar exposure without driving down the US currency rate too much. I've read that they're on a spending spree in South America too. I'm surprised there isn't a rush from more Asian nations to do the same. I'd rather own food and oil assets than 'un-cashed US cheques' right now. These assets will appreciate at a much higher rate than T-bills.

  13. Mon Apr 18, 2005 3:00 pm
    But Sweden and Norway are so small they aren't G-8 countries....they are worth less than most of the biggest corporations.

  14. by LMW
    Tue May 10, 2005 5:11 am
    We probably do have nuclear weapons. We have nuclear power plants so why not the weapons? just not advertised more like a classified secret.



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