“Once again the likelihood of more delays in approving the Keystone XL pipeline seem to be growing. Politics trumps rational economics once again.
“I spent a week in Canada recently, and the news there was full of China's 10 year loan of Panda's to the Toronto Zoo, and statements to the press by the Chinese Ambassador to Canada regarding the "growing closeness of the relationship between Canada and China." The Chinese are doing a full court press on the Canadian public, most likely to encourage politicians to stay out of the way of the Chinese acquiring in the mining, oil and gas production, and Westbound infrastructure for moving raw materials in Canada. China is offering serious financial incentives to make sure that Canadian oil and natural gas can be easily shipped to China.
“It seems obvious that the US floundering and flopping like a chicken with its head cut off will play right into the hands of China. If it didn't have such a long-term negative effect on the US, I'd laugh at this win of free-market capitalism over the idiocy of the left here in the US.”
Eoin Treacy's view Thank
you for this feedback which I'm sure will be of interest to subscribers. Canada
is a major commodity producer which has traditionally exported energy to the
USA. However with the advent of increased domestic US supply the welcome for
Canadian exports has turned more hostile and opposition to the Keystone Pipeline
is another blow to Canada's export potential.
From a Canadian national security perspective developing alternative export markets makes sense and China is likely to constitute significant demand growth for the foreseeable future. (Also see Comment of the Day on April 25th).