Breitling Oil and Gas Morning Podcast #139 August 24th, 2012

If Chinese state owned Cnooc succeeds in its $19.5 billion takeover of Canada’s Nexen, it will vault China’s oil giant into the lead among state-controlled oil companies grabbing North American oil and gas assets. And it will give the Chinese oil-and-gas giant a marvelous opportunity to thumb its nose at xenophobic American politicians who blocked its 2005 takeover attempt of Unocal.  Canada welcomes this foreign investment, especially in the western provinces, because it wants to diversify its customer base for oil and gas exports. Judging by the Obama administration’s rejection of the Keystone XL pipeline, American consumers seem to prefer importing crude oil from Saudi Arabia and Venezuela than from Canada’s oil sands. No wonder the Canadian government sees the long-term boon of building export terminals on the Pacific coast both for oil and liquefied natural gas.

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