• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 8 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 1 hour Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 6 hours Will Uncle Sam Step Up and Cut Production
  • 12 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 1 min Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 1 min 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 21 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 11 mins CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 21 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 23 mins Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 1 day Why Oil is Falling (including conspiracy theories and other fun stuff)
Alt Text

Gibraltar Releases Iranian Tanker

The authorities of Gibraltar have…

Alt Text

The 5 Hottest Gold Stocks Of 2019

Bullish signs are mounting for…

Alt Text

Shale Bankruptcies Are On The Rise

The number of shale bankruptcies…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

Canadian Government Doubles Down on Oil

The Chinese envoy to Canada warned against letting politics interfere with its multibillion dollar takeover bid for Calgary-based Nexen Inc. (NXY) Last week, shareholders at the 40-year-old oil and natural gas company voted in favor of the proposal in what could be a landmark for a Canadian business. Lawmakers in Ottawa, however, have expressed reservations about Beijing's dominance in a market habitually tied to the United States. Though the Canadian government is keen to break its reliance on the U.S. markets, pressure from Beijing could force Ottawa into isolation.

Nexen Inc. announced last week that the overwhelming majority of its shareholders voted in favor of the July takeover bid by China National Offshore Oil Corp. At $15 billion, CNOOC said the deal represents a 61-percent premium to Nexen's close price as of July 20. Not only would the deal give CNOOC access to Nexen's holdings in Nigeria and the U.S. Gulf of Mexico but it would also funnel significant investments into the Canadian oil and natural gas sector.

The Canadian government of Prime Minister Stephen Harper had said it was important for the country to expand its economic footprint outside of North America. The country's pipeline ambitions in the United States are already in limbo in part because of the U.S. presidential campaign season. While pipeline company TransCanada is moving slowly ahead with its planned Keystone XL pipeline, a long list of lawsuits filed by landowners suggests not much will change in 2013. With parts of the U.S. Midwest still reeling from a 2010 spill from TransCanada's counterpart Enbridge, U.S. sentiment likely won't be ripe for major Canadian crude advancements regardless of the outcomes of the November vote in the United States.

Harper in February travelled to Beijing in an effort to draw Chinese investors into his country's oil sector. Canada is among the world leaders in terms of oil and Canadian officials had said roughly $500 billion is needed to keep the momentum going into the next decade. Rob Anders, a Conservative member of the Canadian Parliament, expressed concerns about aggressive acquisitions by foreign states, however.

RELATED: Big Oil Funding U.S. Politics

"I have even greater concerns when it comes to China," he said.

Chinese Ambassador to Canada Zhang Junsai, meanwhile, warned the takeover bid for Nexen "should not be politicized." He brushed off concerns that Beijing would take advantage of a growing position in Canada.

"We are not coming to control your resources," he said

Harper's gamble, however, seems risky. Constituent thinking in the United States has turned somewhat away from big oil in the wake of the 2010 oil spill in the Gulf of Mexico. A global push toward renewables, meanwhile, suggests a general shift away from petroleum products, which is coupled with a modest economic transition to Asian dominance.

RELATED: Smart Sponge Holds the Key to Cleaning Fracking Water

OPEC, in its latest report, expected "healthy growth" from North American oil markets. CNOOC's deal, if it goes through, would be the first for a Chinese company in Canada. With political divisions emerging, however, Harper's bet may be double or nothing.

"If we politicize all this, then we can't do business," the Chinese ambassador said.

By. Daniel J. Graeber of Oilprice.com




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play