• 2 hours Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 5 hours Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 6 hours TransCanada Boasts Long-Term Commitments For Keystone XL
  • 8 hours Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 15 hours Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 20 hours Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 24 hours Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 1 day Venezuelan Output Drops To 28-Year Low In 2017
  • 1 day OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 1 day Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 1 day Kinder Morgan Delays Trans Mountain Launch Again
  • 1 day Shell Inks Another Solar Deal
  • 2 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 2 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 2 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 2 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 2 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 2 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 2 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 2 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 3 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 3 days Norway Grants Record 75 New Offshore Exploration Leases
  • 3 days China’s Growing Appetite For Renewables
  • 3 days Chevron To Resume Drilling In Kurdistan
  • 3 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 3 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 3 days Nigeria Among Worst Performers In Electricity Supply
  • 4 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 4 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 4 days Saudis To Award Nuclear Power Contracts In December
  • 4 days Shell Approves Its First North Sea Oil Project In Six Years
  • 4 days China Unlikely To Maintain Record Oil Product Exports
  • 4 days Australia Solar Power Additions Hit Record In 2017
  • 4 days Morocco Prepares $4.6B Gas Project Tender
  • 4 days Iranian Oil Tanker Sinks After Second Explosion
  • 7 days Russia To Discuss Possible Exit From OPEC Deal
  • 7 days Iranian Oil Tanker Drifts Into Japanese Waters As Fires Rage On
  • 7 days Kenya Cuts Share Of Oil Revenues To Local Communities
  • 7 days IEA: $65-70 Oil Could Cause Surge In U.S. Shale Production
  • 7 days Russia’s Lukoil May Sell 20% In Oil Trader Litasco
Alt Text

Geopolitical Wildcards Could Push Oil Beyond $70

This week’s two biggest stories…

Alt Text

Is An Oil Price Spike Inevitable?

Oil prices have rallied recently…

Alt Text

OPEC Oil Production Falls In December

OPEC’s oil production fell in…

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

Canadians Issue Resounding Hell-No to Beijing

Canadians Issue Resounding Hell-No to Beijing

In the latest rush to take advantage of oil opportunities in Canada, Exxon Mobil announced it signed a deal to acquire Celtic Exploration Ltd. for around $2.6 billion. The deal would give the U.S.-based supermajor access to shale reserves in British Columbia and Alberta. It also follows a string of moves by rival foreign companies to establish a foundation in North America. While the Canadian government is eager to entice investors to its oil reserves, recent public opinion surveys suggest most are wary of what looks like a foreign takeover of the petroleum sector.

Exxon's division in Canada announced it acquired 545,000 acres of shale in British Columbia and another 104,000 acres in neighboring Alberta province in the deal with Calgary-based Celtic Exploration. As of December, Celtic estimated the reserve potential at around 128 million barrels of oil equivalent. Andrew Barry, president of ExxonMobil Canada, said the acquisition adds "significant" resources to its unconventional portfolio in North America. Celtic, for its part, said the acquisition was in the company's best interest and represented a fair value for shareholders.

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. In February, the prime minister traveled to Beijing in order to draw Chinese investors to his country's oil sector. Canada is among the world leaders in terms of oil and officials there had said roughly $500 billion is needed to keep the momentum going into the next decade. Exxon's bid to take on Celtic for $2.6 billion follows a $15 billion bid by state-owned China National Offshore Oil Corp. to acquire Canadian oil and natural gas company Nexen. Malaysia's state-owned Petronas, meanwhile, has offered more than $5 billion for Progress Energy Resources, based in Calgary.

Exxon, CNOOC and others are looking to North America as a way to secure their portfolios against rival action in Russia and Latin America. A public opinion survey, however, finds that most Canadians are wary of foreign takeovers. Survey company Angus Reid Public Opinion, in an online survey involving 1,000 Canadian adults, found that most respondents reacted negatively to foreign control of their natural resources. The survey noted that most "are not particularly supportive" of the CNOOC deal in particular.

Whether that sentiment extends to China exclusively remains to be seen, though recent trade disputes in the renewable energy sector suggest that may indeed be the case. Tuesday's town-hall debate between U.S. President Barack Obama and Republican challenger Mitt Romney sparked outrage from Chinese state media, which claimed the economic tirades against Beijing did little to foster bilateral friendships.

"U.S. politicians need to paint a truer picture for their constituents," a report from the Xinhua news agency reads. "This picture should embrace China's rise and acknowledge that engaging with China will amplify win-win results, but scapegoating, isolating and vilifying China will hurt both sides."

With Beijing warning the Harper government not to let political matters interfere with business affairs, the race to tap into North American shale may be a reflection of the broader geopolitical issues at stake.

By. Daniel J. Graeber of Oilprice.com




Back to homepage


Leave a comment
  • G.J.W. on October 19 2012 said:
    Canadians want nothing to do with Red China. Scores of Canadians want nothing to do with Harper either. While other country's are escorting Red China out of their territories....Harper has brought that country, right onto our Canadian soil.

    China is showing aggression around the globe. China hacked into other country's secret files. They sold infected electronic components to other country's. U.S. missiles and other weapons, had infected components purchased from China.

    Harper is a dictator and, an out and out bully. Even other country's can't stand Harper's bullying nor his hissy fits, when he doesn't get his own way.

    BC will fight to the last ditch, before they will permit that dirty lethal Bitumen, to come into that beautiful province. Harper and Gordon Campbell did enough dirt to BC and the people. They signed sneak deals regarding the Enbridge pipeline, behind the BC peoples backs.

    Enbridge has done nothing other than blatantly lie, and use every dirty tactic in the book, to lie their pipeline into BC. They haven't cleaned up, their last 804 spills.

    Not only did Harper sell huge chunks of the tar sands to China. He also gave them all the jobs too. He has permitted company's to hire cheap Chinese labor. There is nothing in the tar sands for the Canadian people, what-so-ever. Who will be hired at the tar sands, Canadians or cheap Chinese labor?

    Harper is a traitor, committing High Treason, for selling us out, to a Communist country. Canadians want nothing to do with Red China, what-so-ever.
  • John Lang on October 19 2012 said:
    CNOOC values Nexen more than its current Canadian owners, who apparently have better ideas for their capital than keeping it in Nexen. So let's allow the sale. If we do, Nexen will continue to operate, employing lots of Canadians, and the Canadian vendors will have $15 billion to invest in additional employment-creating ventures. No-brainer. If our government disallows the sale to CNOOC, they should be ready to buy the company themselves, matching the Chinese offer. This is not a sale of resources, merely a sale of a licence to extract Canadian resources while paying big royalties and taxes.

    If we wish to continue to buy mountains of stuff from China, in return for giving them mountains of loonies, and if we do not make anything they want, we should allow them to dispose of the loonies by buying assets here. Loonies all must ultimately be spent in Canada.
  • Dan on October 19 2012 said:
    Obviously you are a lefty G.J.W. and it doesn't matter what Harper does you will be against it. We as Canadians are doing very well, because we have the Conservatives.
  • Heretic on October 19 2012 said:
    The Canadian government will do what it wants, and the Canadian people will roll over and beg like they always do. Bother me not with the opinions of slaves.
  • jonathan on October 22 2012 said:
    If i am Cnooc i will take out my bid and invest the money elsewhere. Nexen do not worth 15 billions. Energy sector will suffer from that setback and that's Canada net benefits....meaning less project less jobs and probably less accessibility to chinese markets altogether. I am curious though to see if Exxon's bid will go through or not. After what the big global financial mess that the US did, they are certainly still the welcome to invest over here. Imagine the hundred millions jobs that they erase by having a greedy and savage capitalism system. Think it twice...

Leave a comment




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