|"Seriously, Does This Make My Ass Look Fat?"|
The oil sands are more “vulnerable than many would care to admit,” and are already facing ‘exceptional circumstances’ under which the federal government has said it will allow state-owned-enterprises to takeover bitumen assets.
“The need for massive amounts of capital, skyrocketing costs, the exposure to oil price volatility, the technological and environment issues, the competition from shale oil, severe pipeline bottlenecks and political opposition in Canada and the United States are just some of the challenges which will ensure that ‘exceptional circumstances’ will guide most future government decisions regarding the oil sands,” Pierre Fournier, geopolitical analyst at National Bank Financial said in a report.
The industry needs around $60-billion of capital annually, which exceeds the available long-term private capital. Meanwhile, Chinese capital — abundant and patient — is an attractive and alternative source of capital to fuel the oil sands’ development.
“Over the years, CNOOC has acquired and managed highly diversified projects in some of the riskiest jurisdictions in the world, with few concerns for oil prices or global economic conditions. Overall, China also seems convinced that natural resources —including Canadian oil and gas — are sound long-term investments.”
Harper said he would never, ever, not ever again allow a Chinese government takeover of a Canadian energy major - except in, wait for it, "exceptional circumstances." Now the Oil Patch is saying that the whole damned thing is one giant "exceptional circumstance" in need of Chinese Communist government life support.
Update - A sad reminder that Alberta buried the last great Albertan who truly understood the Athabasca Tar Sands and how that resource needed to be developed, only they never listened. Now the Communisty Party of China gets to reap what they sowed. A bunch of damned, greedy fools who get what they deserve.