Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Canadian Oil Sands - A Good Investment? Not in Europe, Apparently

Commodities / Crude Oil Oct 12, 2011 - 03:42 AM GMT

By: OilPrice_Com

Commodities

Any American watching cable TV over the past few months can hardly fail to have noticed the seemingly ubiquitous advertisements extolling the virtues of extracting oil from Canadian oil sands, which the commentators assure their audience has a carbon footprint largely comparable with traditional fossil fuels, and which, if developed will provide not only millions of new jobs but billions of dollars for governments as well as energy security by weaning the Western Hemisphere off its addiction to terrorism-tainted Middle East oil.


But don't break out your checkbook just yet.

Apparently those pesky Eurocrats in Brussels haven't gotten the message, as on 4 October the European Commission proposed that oil sands crude be ranked as a dirtier source of fuel compared with oil from conventional wells.

The move has unsettled Ottawa, as all of the world's oil sands reserves are in northern Alberta and Saskatchewan. While Canada does not currently ship any of its oil sands production to Europe, the Canadian energy industry is alarmed that Europe's green anti-oil-sands policy could influence other global areas, such as Asia, where Canada hopes to develop a market for its oil sands crude exports.

Canadian Association of Petroleum Producers vice-president of oil sands and markets Greg Stringham said, "The concern for us is one of principle and precedent. The importance of it in the EU for us is that it could set a precedent on which others then build their policies," adding that the EU is playing favorites, as it imports oil from Nigeria and Russia, whose energy products have similar greenhouse gas emissions as oil sands.

The European Commission's decision came after lengthy internal debate, but the body ended up recommending that oil sands-derived fuel be given a greenhouse gas rating of 107 grams per megajoule, roughly 20 per cent higher than the 87.5 grams assigned to fuel from conventional crude oil. A bill containing a fuel-quality directive (FQD) targeting oil sands imports is due to be presented to the European Parliament for a vote later this year.

It's a largely symbolic gesture, as according to Canada's National Energy Board, 98.5 percent of Canada's first quarter 2011 oil sands exports went to the United States.

But it's the principle of the thing, and Ottawa is now threatening to retaliate in the area of Canadian-EU bilateral trade, a not insignificant concern, as last year the EU imported about $26.8 billion of Canadian goods, while Canada took roughly $35.6 billion of EU imports.

Canadian Natural Resources Minister Joe Oliver while visiting Washington thundered against the European Union, saying the action would be "discriminatory" and could trigger a challenge before the World Trade Organization, adding, "Should the European Union implement unjustified measures which discriminate against the oil sands, we won't hesitate to defend our interests. They are doing it believing, apparently, that there is no downside."

In a more conciliatory tone Oliver noted, "The government of Canada does not object to the fuel quality directive goal of reducing emissions for transportation fuels. However, we do object strongly to discriminatory treatment that singles out oil sands-derived fuels without scientific justification... We don't like the potential stigmatization and we don't think it is justified."

Not every Canadian is incensed with the European Commission's actions however. Climate Action Network Canada Executive Director Graham Saul said that the decision "sends a clear signal that no amount of aggressive lobbying can counter the scientific fact that tar sands are one of the world's dirtiest fuels."

But left unsaid is that the larger issue for Canada is not either the EU or even Asia, but - the U.S., where opposition is rising dramatically to Calgary-based TransCanada Corp.'s proposed $7 billion Keystone XL pipeline, which would transit up to 830,000 barrels of oil per day from Hardisty, Alberta, to refineries on the Gulf Coast of Texas. Environmental groups in such stalwart Republican states as Nebraska are up in arms over the proposal, fearing that a leak from the underground pipeline would irrevocably pollute the Ogalla Aquifer, source of much of the Great Plains' agricultural water.

In weeks of protest in Lafayette Square opposite the White House, more than 1,250 demonstrators have been arrested objecting to the pipeline. So the Canadian government is essentially venting its frustration on Europe while keeping its eyes firmly focused on Washington, where the real battle has begun. It's enough to put a patriotic Canadian right off his croissant - unless it's made in Quebec.

Source: http://oilprice.com/Energy/Energy-General/Canadian-Oil-Sands-A-Good-Investment-Not-in-Europe-Apparently.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2011 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules