{"id":11880,"date":"2012-01-20T21:31:24","date_gmt":"2012-01-21T02:31:24","guid":{"rendered":"http:\/\/blog.beliefnet.com\/watchwomanonthewall\/?p=11880"},"modified":"2012-01-20T22:01:55","modified_gmt":"2012-01-21T03:01:55","slug":"obama%e2%80%99s-keystone-denial-prompts-canada-to-look-to-china-sales","status":"publish","type":"post","link":"https:\/\/www.beliefnet.com\/columnists\/watchwomanonthewall\/2012\/01\/obama%e2%80%99s-keystone-denial-prompts-canada-to-look-to-china-sales.html","title":{"rendered":"Obama\u2019s Keystone Denial Prompts Canada to Look to China Sales"},"content":{"rendered":"
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Thanks for nothing, Obama!<\/h1>\n

___________________________________________________________<\/p>\n

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By Theophilos Argitis and Jeremy Van Loon<\/p>\n<\/div>\n

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President\u00a0Barack Obama<\/a>\u2019s decision yesterday to reject a permit for TransCanada Corp.\u2019s Keystone XL oil pipeline may prompt Canada to turn to\u00a0China<\/a>\u00a0for oil exports.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Steven Harper, Prime Minister of Canada Looks to China to Sell Oil to<\/figcaption><\/figure>\n

Prime Minister\u00a0Stephen Harper<\/a>, in a telephone call yesterday, told Obama \u201cCanada will continue to work to diversify its energy exports,\u201d according to details provided by Harper\u2019s office. Canadian Natural Resource Minister Joe Oliver said relying less on the U.S. would help strengthen the country\u2019s \u201cfinancial security.\u201d<\/p>\n

The \u201cdecision by the Obama administration underlines the importance of diversifying and expanding our markets, including the growing Asian market,\u201d Oliver told reporters in Ottawa.<\/p>\n

Currently, 99 percent of Canada\u2019s crude exports go to the U.S., a figure that Harper wants to reduce in his bid to make Canada a \u201csuperpower\u201d in global energy markets.<\/p>\n

Canada accounts for more than 90 percent of all proven reserves outside the Organization of Petroleum Exporting Countries, according to data compiled in the BP Statistical Review of World Energy. Most of Canada\u2019s crude is produced from\u00a0oil-sands<\/a>\u00a0deposits in the landlocked province of Alberta, where output is expected to double over the next eight years, according to the Canadian Association of Petroleum Producers.<\/p>\n

\u201cI am sure that if the oil sands production is not used in the\u00a0United States<\/a>, they will be used in other countries,\u201d\u00a0Fatih Birol<\/a>, chief economist at the\u00a0International Energy Agency<\/a>, said in an interview before a speech at Imperial College in\u00a0London<\/a>\u00a0today.<\/p>\n

\u2018Profound Disappointment\u2019<\/h2>\n

Harper \u201cexpressed his profound disappointment with the news,\u201d according to the statement, which added that Obama told Harper the rejection was not based on the project\u2019s merit and that the company is free to re-apply.<\/p>\n

Canada this month began hearings on a proposed pipeline by Enbridge Inc. to move crude from\u00a0Alberta<\/a>\u2019s oil sands to British Columbia\u2019s coast, where it could be shipped to Asian markets.<\/p>\n

Environmentalists and Canadian opposition lawmakers welcomed the Obama administration\u2019s decision. Megan Leslie, a lawmaker for the opposition\u00a0New Democratic Party<\/a>, said the Keystone pipeline project was harmful to Canada\u2019s\u00a0energy security<\/a>.<\/p>\n

\u201cWhat I\u2019m opposed to is continuing the unchecked expansion of the oil sands,\u201d Leslie said by telephone.<\/p>\n

New Flashpoint<\/h2>\n

Enbridge\u2019s pipeline may now become the new flashpoint between Harper and the opposition. Harper has said building the capacity to sell the country\u2019s oil to Asian markets is in the national interest, and the government will review regulatory- approval rules for new energy projects so they can be done more quickly. Harper has also said he will look more closely into complaints that \u201cforeign money\u201d is being used to overload the regulatory process.<\/p>\n

\u201cWe have to have processes in\u00a0Canada<\/a>\u00a0that come to a decision in a reasonable amount of time, and processes that cannot be hijacked,\u201d Harper said at a press conference Jan. 6 in\u00a0Edmonton<\/a>.<\/p>\n

The Keystone decision is the latest of several U.S. moves that have irked Canadian policy makers. Canada objected to \u201cBuy American\u201d provisions in the Obama administration\u2019s $447 billion jobs bill that was blocked by Republicans in Congress, as well as the restoration of a $5.50 fee on Canadian travelers arriving in the U.S. by plane or ship.<\/p>\n

Approval of Keystone is a \u201cno-brainer,\u201d Harper said in a Sept. 21 interview with Bloomberg.<\/p>\n

Cornerstone of Development<\/h2>\n

Yesterday\u2019s rejection \u201ccertainly introduces new uncertainties into the economic relationship,\u201d said David Pumphrey, deputy director of the energy and national security program at the Center for Strategic and International Studies in\u00a0Washington<\/a>. \u201cThis is a cornerstone of economic development for the country.\u201d<\/p>\n

The denial came before a Feb. 21 deadline set by Congress after Obama postponed a decision in November. TransCanada said the 1,661-mile (2,673-kilometer)\u00a0project<\/a>\u00a0would carry 700,000 barrels of crude a day from Alberta\u2019s oil sands to refineries on the U.S. Gulf coast, crossing six U.S. states and creating 20,000 jobs.<\/p>\n

\u201cI\u2019m disappointed that Republicans in Congress forced this decision, but it does not change my administration\u2019s commitment to American-made energy,\u201d Obama said today in a statement. \u201cWe will continue to look for new ways to partner with the oil and gas industry to increase our energy security.\u201d<\/p>\n

Canadian policy makers said they remain optimistic TransCanada will eventually be able to proceed.<\/p>\n

Still Supporting<\/h2>\n

Alberta Premier Alison Redford said in a press conference in Edmonton that it is still \u201centirely possible\u201d the pipeline will be built and said it was good news that TransCanada planned to apply again.<\/p>\n

Canada will continue to support\u00a0TransCanada Corp. (TRP)<\/a>\u2019s plans to build the Keystone XL pipeline, Canadian Foreign Minister\u00a0John Baird<\/a>\u00a0said, adding that it is in the best interests of both Canada and the United States.<\/p>\n

\u201cWe strongly believe that Keystone\u2019s in the best interests of both countries,\u201d he said. \u201cWe\u2019ll continue to be an active supporter of the project.\u201d<\/p>\n

Read more:\u00a0http:\/\/www.bloomberg.com\/news\/2012-01-19\/canada-pledges-to-sell-oil-to-asia-after-obama-rejects-keystone-pipeline.html<\/a><\/p>\n

______________________________________________________________<\/pre>\n
Watchwoman<\/span> Related Posts<\/strong><\/p>\n
Republicans fume as Obama rejects Keystone pipeline<\/strong>
\nhttp:\/\/blog.beliefnet.com\/watchwomanonthewall\/?p=11792<\/a><\/p>\n
Obama\u2019s Keystone Denial Prompts Canada to Look to China Sales<\/strong>
\nhttp:\/\/blog.beliefnet.com\/watchwomanonthewall\/?p=11880<\/a><\/p>\n
______________________________________________________________<\/pre>\n
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 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Thanks for nothing, Obama! ___________________________________________________________   By Theophilos Argitis and Jeremy Van Loon President\u00a0Barack Obama\u2019s decision yesterday to reject a permit for TransCanada Corp.\u2019s Keystone XL oil pipeline may prompt Canada to turn to\u00a0China\u00a0for oil exports. 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