The acquisition of a nine per cent share of the Athabasca tar sands’ marquee Syncrude operation by Sinopec (which is owned by the Chinese government) signals a new willingness on China’s part to sink billions into the future development of high-cost oil from tar sands. It coincides with the granting of a $20-billion soft loan by China to the Chávez regime in Venezuela, which will at least in part be repaid in oil from that country’s Orinoco tar sands.
The Canadian companies are seeking to expand output from Alberta’s oil sands, the world’s biggest crude reserves outside Saudi Arabia, as crude prices climb 26 percent from last year. Cenovus, the oil company spun off last year from Encana Corp., today reiterated a plan to boost oil-sands production fivefold to 300,000 barrels a day by 2019.
Canadian oil sands are poised to be the top source of crude imports to the U.S. this year, according to a May report by IHS- Cambridge Energy Research Associates.
BP shareholders overwhelmingly rejected a resolution that would have required the company to report on the environmental, financial and reputational risks of developing Canadian oil sands projects. The resolution was rejected by 85 percent of shareholders voting.
The news comes as a proposed pipeline to deliver crude from oil sands in Canada to Texas passed an important environmental hurdle.
evnow wrote:China is jostling for the time when oil gets supply constrained (does this poll better than peak oil ?). Canada will then be sending some oil to China - reversal of centuries old pattern of getting raw materials from east & sending finished goods would then be complete.
AndyH wrote:I wish I knew what OUR energy plan is...
evnow wrote:China is jostling for the time when oil gets supply constrained (does this poll better than peak oil ?).
drees wrote:Oil is already constrained ...