Mon, May 28, 2012, 6:24 AM EDT - U.S. Markets closed for Memorial Day

Canadian PM to visit China next week

Canadian PM Stephen Harper looks to diversify oil exports with trip to China

TORONTO (AP) -- Canada's prime minister heads to China next week where he'll discuss Canada's vast oil reserves in a visit that's being viewed as an "open warning" to the United States, which rejected a pipeline from Canada to Texas.

Prime Minister Stephen Harper will be in Beijing and two other cities for bilateral meetings with top Chinese officials, including President Hu Jintao and Premier Wen Jiabao, from Feb. 8-11.

Andrew MacDougall, Harper's spokesman, said Friday it is "absolutely in Canada's interests" to move the country's resources to China.

Five Cabinet ministers, including the ministers of natural resources, trade and foreign affairs will make the trip with Harper.

Harper is determined to build a pipeline to Canada's Pacific Coast after U.S. President Barack Obama rejected the Keystone XL pipeline that would have taken oil from Alberta to refineries in Texas.

Ninety-seven percent of Canadian oil exports now go to the U.S and Harper is eager to diversify. Canada is increasingly looking to China, thinking America doesn't want a big-stake share in what environmentalists call "dirty oil," which they say increases greenhouse gas emissions.

Canada has the world's third-largest oil reserves after Saudi Arabia and Venezuela: more than 170 billion barrels. Daily production of 1.5 million barrels from the oil sands is expected to increase to 3.7 million by 2025, which the oil industry sees as a pressing reason to build the pipelines.

Harper told Obama he was "profoundly disappointed" that he rejected the Keystone XL pipeline. The pipeline has become a hot topic in the U.S. presidential election. Republican presidential candidates Newt Gingrich and Mitt Romney have both promised to approve the pipeline.

After Obama first delayed a decision on the Keystone pipeline in November, Harper told the Chinese president at the Pacific Rim summit in Hawaii that Canada would like to sell more oil to China, and the Canadian prime minister filled in Obama on what he said.

Wenran Jiang, an energy expert and professor at the University of Alberta, said Canada is using China as leverage.

He said Harper's visit is an explicit warning to the U.S.

"It's a not a subtle warning. It's an open warning," Jiang said. "Harper has said Keystone was a wake-up call."

Jiang said Washington will be paying attention to the trip but he said a number of factors make U.S. officials less worried than a few years ago when China's intentions in Canada's oil sector weren't as clear as they are now.

Jiang said U.S. officials no longer fear that the Chinese are investing in Canada to lock up the supply and ship it back to China. But Jiang said that doesn't prevent Republicans like Gingrich and Romney from raising fears that the U.S. is losing energy security.

David Goldwyn, a former energy official in the Obama administration, has said he sees no threat from Chinese inroads into Canada because there is more than enough oil for all concerned.

China's growing economy is hungry for Canadian oil. Chinese state-owned companies have invested more than $16 billion in Canadian energy in the past two years. State-controlled Sinopec has a stake in Enbridge's proposed Pacific pipeline, and if it is built, Chinese investment in Alberta oil sands is sure to boom.

Zhang Junsai, China's ambassador to Canada, has said Harper's visit will help forge a "win-win" natural resource partnership with Canada to help his country's expanding economy meet its voracious energy needs.

Forty Canadian business leaders will accompany Harper on the trip.

Relations between the countries have improved since Harper's first visit in 2009 when Premier Wen publicly chided Harper for taking so long to visit China. Harper has since changed Canada's hardline stance on human rights.

 

73 comments

  • Patrick  •  Atlanta, Georgia  •  3 months ago
    Hello Obama,

    Now that you have made the tree huggers happy ....thanks for the screw job.......you are throwing away our future.

    I am really in disbelief how you won the election................this shows how incredibly stupid we are maybe America can wake up
  • michaelc  •  3 months ago
    Canada, being a good neighbor, has given us 'first right of refusal'. 'A word to the wise is sufficient", as the old saying goes. I guess China and Canada will have that new pipeline 'up and running' in jig time, while we are still fretting about Iran and its oil.Not exactly the best way to protect our interests,eh? One good way to see how an executive is doing is to see the kind of people that he picks for his advisors. So far with Obama, he doesn't look to have picked too many good people. I would say that a lot of them qualify as 'political hacks'.
  • TedEx  •  Philadelphia, Pennsylvania  •  3 months ago
    Hey, Obama! Heating oil is more than $ 4.00 a gallon. Thanks a lot, you ((censored)) for turning away Canada, one of our country;s few remaining friends.
    • Steve 3 months ago
      Don't be fooled. We just pretend to be friends... for benefits.
    • landl47 3 months ago
      Don't be so stupid. The US doesn't set the price of oil and Canada already sells 97% of its exported oil to the US. So you mention two facts and get them both wrong. Easy to see you're a Republican.
    • 6th grade superstar 3 months ago
      By the time the government realizes the mess we are if they even care it'll be to late. China will stand at the Pickett of every natural resource and make us pay dearly for wrecking our currency and causing their treasury holdings value to dwindle. I hope we all wake up in time.
  • sirdon2  •  3 months ago
    The International Monetary Fund (IMF) has warned of a 20-30% oil price spike if Iranian exports are disrupted. And now Canadas oil going to China, we are screwed.
  • Super  •  3 months ago
    Well, when the wind turns, American still dreams the dream that US is the richest country on earth and put their heads into the sands
  • Jobs Jobs  •  3 months ago
    so, Canada going to be next super controller on oil prices and US Canadian war in next 50 yrs on oil?
  • Curtis  •  Abbotsford, Canada  •  3 months ago
    I find it interesting that Mr. Harper, and in fact few of our Canadian politicians, aren't pushing more strongly for the development of refining facilities on Canadian soil. Isn't it time that we stopped shipping off our resources and started creating home grown second and tertiary industries and jobs?
  • Mohave Bob  •  3 months ago
    That's how dumb obama and environmentalists are! They think that if the US doesnt buy their "dirty" oil that they will protecting the environment. WRONG. Canada will keep developing their resources and selling them to someone else, like China. The US aint gonna stop the dirty oil one bit. If they were smart, THEY might as well buy it. But NO, make Canada sell it to someone else and it's still dirty. Loose-Loose Obummer!!
  • Wake-Up  •  3 months ago
    Canada routes it pipeline to Pacific coast to export oil to China while Saudi signed agreement with China to build a new refinery in China.
    What does America get? Higher oil dependency on Middle East and a net loss of 20000+ jobs at home.
    • noway 3 months ago
      You are mistaken. China is building a refinery in Saudi Arabia. As you know Saudi has no technology in building refineries. It only has oil wells. On the other hand China's oil technology is one of the best in the world.
    • Patrick 3 months ago
      Thank your president
  • reality fan  •  Richmond, Virginia  •  3 months ago
    It should be construed as a warning to the US, people. The idiot in charge in Washington is acting like a fool, selling out our friends to the north and ignoring what's good for our country and the North American countries. I don't blame Canada, they are willing to marlet their oil. Seems they came to us, their neighbors first, only to be rebuked by "you know who".
  • Mr. Tony  •  Kennesaw, Georgia  •  3 months ago
    Canada will sell Oil to China while we will get it from the Middle East. So we basically we will pay more for gas and be in a difficult postion militarily concerning the Middle East. Obama could have agreed to the pipeline for the good of the American people but no he had to stick it to the Republicans. Our president is a #$%$ who is only interested in destroying this country. Please remove this clown in November.
    • MRD 3 months ago
      Pipelines from Canada to refineries in US already exist.
    • Mr. Tony 3 months ago
      The Keystone pipeline would enable us to get more oil from Canada to lessen our reliance on the Mideast. The current pipelines are not enough to handle the increase in production that will come from the Canadian oil shales. Wouldn't you rather buy oil from Canada than Saudi Arabia?
  • Super  •  3 months ago
    Do not be too naive.
    The reason Canadian primister visit China is not just to finad a market for its sand oil, and there is much more, such as stratigic partner...etc, To be qualified as the world leader, you have to be
    1) The major military power of the world
    2) Huge domestic market to absorbe the products from all over the world
    3) A strong economy

    From the above, US does not qualify to be the world leader anymore, and that is why Greman Chansller , Canadian primister, French president, Russian preesident, Japanese primester, Korean president all visit China, and how many of them visit US recently ?
    Today, US is a country with empty pocket and $15 Trillions of debt, and an economy in deep recession, actually depression, and beg for money all over the world, beg others to purchase debt, then why should other countries take US as the world leader ? That is why the wind is changing, all the leaders around the world are on their way of visiting China
    • Timur 3 months ago
      I was going to say that and you said before me. Not only no leaders visit the US, the US politicians worry about acting in front of the American people who still believe in the dream world in order to keep their jobs. It is a con game. Internationally, all the US did was to trumpet the same slogans: democracy, human rights and move their fleets AND NOT DOING ANY HOMEWORKS on other nations. Essentially a one way conversation.
    • Steve Jackson 3 months ago
      Don't be daft. There are at least 10 countries that "all the leaders around the world" visit. The Chinese leaders still visit France, for example.

      And yeah, they still visit the USA, too.
  • nobody  •  3 months ago
    Look like more and more countries are lead by smarter and smarter leaders, only in US we keep to put in more and more dumb ones..........
    • maggie 3 months ago
      Our (us) leaders are from stupid. They are just the greediest. They must get their $$$ up front before considering the masses.
  • DAVE  •  3 months ago
    to sell them a bunch of suddenly available oil.
  • Patrick Hofmann  •  Syracuse, New York  •  3 months ago
    Obama still has a crush on himself. He should go back to Reverend Wright. Hillary would build the pipeline.Canada is not stupid.
  • uggtard  •  Reston, Virginia  •  3 months ago
    well...either the chinese get oil or oil prices go up....supply and demand....i dont want higher oil prices....
  • Global Truth  •  Harrisburg, Pennsylvania  •  3 months ago
    America has enormous oil and gas reserves in the ground right here on our own soil. Why Obama inststs on buying oil from his muslim cousins should be proof to all, who's pockets he wants to fill. His handler George Soros, the puppet meister bets against America and makes billions with Obama at his beck and call on these anti-American oil regulations. Drill now. We need these jobs and we need to monetize our own vast natural resources. It's high time America wakes up and understands that Obama's muslim cousins are the money backers of these "green" environmental movements that are locking out American oil production on our own soil.
  • james  •  3 months ago
    The oil pipeline to Canada's west coast will be discussed and it will get built with some Chinese financing. Why not? The USA has idiots in charge.
  • ntd  •  3 months ago
    Obama not going to care about that because he got it make for life times protected, we are the tax payers already paid for what he going to earn for life times that including the gas and everything he going to use. we need to get him out of the White house.
  • Earlinthehood  •  3 months ago
    This is "We the People's" country. Not Obama's country. Let's put it to the American people for a vote if we want the Keystone Pipeline or not...and let's throw out Obama and his group of idiots in November.
 
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