• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 38 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 23 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 1 day As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 23 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 4 hours Middle East on brink: Oil tankers attacked off Oman
  • 9 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 1 day Never Knew Gasoline Prices were this important!
  • 14 hours Plants are Dying
  • 6 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 1 day (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 20 hours We Are Better Than This
  • 9 hours Emmissions up, renewables nowhere
  • 2 days Britain makes it almost 12 days with NO COAL
Alt Text

Escalating Trade War Signals More Pain For Oil

The quick resolution of the…

Alt Text

Climate Change Could Trigger Global Financial Crisis

A top U.S. financial regulator…

Alt Text

Putin’s $40 Oil Lie

Much has been made of…

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

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News