Keystone Aftermath Arrives: Canada Pledges To Sell Oil To Asia, As US Becomes Source Of "Uncertainty"

Tyler Durden's picture

America's loss is China's gain. In the aftermath of the Keystone XL fiasco, which will see not only a number of jobs "uncreated" but a natural source of crude lost, Canada is already planning next steps. Which will benefit Shanghai directly and immediately. As Bloomberg reports, "Prime Minister Stephen Harper, in a telephone call yesterday, told Obama “Canada will continue to work to diversify its energy exports,” according to details provided by Harper’s office. Canadian Natural Resource Minister Joe Oliver said relying less on the U.S. would help strengthen the country’s “financial security.” The “decision by the Obama administration underlines the importance of diversifying and expanding our markets, including the growing Asian market,” Oliver told reporters in Ottawa." Ironically, it is diversifying away from the US, with its ever soaring, politically-predicated uncertainty, that is a source of stability and diversification. But it is not only crude. Wonder why no jobs are being created? Wonder why despite record low mortgage rates there is no bottom in sight for housing? Simple - nobody can plan one month, let alone one year ahead for any US-based venture or business. The political risk is simply too great - whether it is contract law (see GM and Chrysler) or simple solvency (see record high levels of cash hoarded by companies), it is there, and as long as it is there, there will be no hiring, no capex spending, no growth, and no real improvement in the economy, the real economy, not that defined by where the Russell 2000 closes on any given day.

More from the Keystone XL aftermath:

Harper “expressed his profound disappointment with the news,” according to the statement, which added that Obama told Harper the rejection was not based on the project’s merit and that the company is free to re-apply.


Canada this month began hearings on a proposed pipeline by Enbridge Inc. to move crude from Alberta’s oil sands to British Columbia’s coast, where it could be shipped to Asian markets.


Environmentalists and Canadian opposition lawmakers welcomed the Obama administration’s decision. Megan Leslie, a lawmaker for the opposition New Democratic Party, said the Keystone pipeline project was harmful to Canada’s energy security.


“What I’m opposed to is continuing the unchecked expansion of the oil sands,” Leslie said by telephone.


Enbridge (ENB)’s pipeline may now become the new flashpoint between Harper and the opposition. Harper has said building the capacity to sell the country’s oil to Asian markets is in the national interest, and the government will review regulatory- approval rules for new energy projects so they can be done more quickly. Harper has also said he will look more closely into complaints that “foreign money” is being used to overload the regulatory process.

Then there are those who have pointed out that in recent years the equity risk premium has soared to multi-year highs. There is a reason for that. It is called: America.

Yesterday’s rejection “certainly introduces new uncertainties into the economic relationship,” said David Pumphrey, deputy director of the energy and national security program at the Center for Strategic and International Studies in Washington. “This is a cornerstone of economic development for the country.”

And as pertains to this story, it is a good thing that the American Strategic Petroleum Reserve is safe and untapped for every eventuality. Oh wait...

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Kyle Reese's picture

Maybe they should do environmental impact studies before they decide to shoot toxic exlosives at terrorists if they care so much about the environment.  I think this is all political.  Obama should have countered with some kind of alternative route.  I dont get his BS.  

malek's picture

Let's regulate more, the bureaucrats will fix it for us, has worked countless times before! I hope nobody needs a sarc flag here.

moondog's picture

Regulations only work if the regulators enforce them.The US is run by corrupt mobsters and crooks who move between the public and private sector (see Goldman Sachs, Haliburton et al.). We need to get rid of corruption before we add any more regulations. That said, bring back Glass Steagall!

Silver Bug's picture

Wow, you can't make this stuff up! Way to go Obama!



hedgeless_horseman's picture



The USA needs to liberate that oil from the oppressive Canadian government.

LawsofPhysics's picture

Didn't the U.S. and Canada agree to work together on crowd control in both countries recently, or something to that effect?  Links anyone?

hedgeless_horseman's picture



...underlines the importance of diversifying and expanding our markets, including the growing Asian market.”

That sounds familiar. 


That looks familiar.

The kiss of death.


...we begin bombing in five minutes.

Agent P's picture

Say what you will about the man, but that Gaddafi was one snappy dresser!

hedgeless_horseman's picture



Have you forgotten?  Before he became the President of the United States of America, Barack Hussein Obama II was a real fashion plate, too...

Agent P's picture

Bed sheet wearin', pimp cane totin', bad ass mutha fucka!

kralizec's picture

Islamists always dress up their young boys before initiating them into the Thursday Night Club.

Iwanttoknow's picture

Your depth of knowledge and sagacity overwhelms me.

Waffen's picture

It was n agreement that Mexican and Canadian police can be used in the us and the us in theirs.

scatterbrains's picture

Can't wait to see the live feed of mexican cops bashing the heads in of unemployed x-military american youth at some occuypied site.. how long will it be before we see that ?

RichardENixon's picture

Depends on whether it's work Americans "just won't do"

JohnFrodo's picture

True, crowd control is now mutual, if Americans riot send in the Canuks and vice versa.

EvlTheCat's picture

"Canada, U.S. agree to use each other’s troops in civil emergencies"

Canada Command
National Defence and the Canadian Forces website

If you don't want to open the PDF

EvlTheCat's picture

4 February 2011

"Beyond the Border: a shared vision for perimeter security and economic competitiveness"

Full circle jerk:

NORAD, USNORTHCOM release Vision 2020

GOSPLAN HERO's picture

I heard there be WMD in Canada.



CPL's picture

Yes, cartons of quarts (giant beer versus tiny beer) of Labatts 50 (made from left over urinal pucks in legions) will be deployed.

fuu's picture

2) The Candadian government allows some Canadians to legally use marijuana. The marijuana is bought with money which becomes drug money. Terrorists fund themselves with drug money. The US is at war with terrorism.

ucsbcanuck's picture

There's a Q in Iraq.

There's also a Q in al-Qaeda.

Dammit there's a Q in Queen!

Those Canadians are ruled by a Queen!

Time to go after those Canadians and the surviving members of Queen.

Chief KnocAHoma's picture

fuu - you should get stoned and read your own post. I'll bet it is very funny when you are baked.

LawsofPhysics's picture

All those FEMA camps starting to make sense to anyone else yet?

Out9922's picture

I was thinking we were going to go first.  Now, I think its the EBT peepz.

tim73's picture

Et tu, Canada?

Waffen's picture

Well, like George Soros said, China will be the engine of the global economy. Americas future is over, Soros told us in 2008.

LawsofPhysics's picture

America has the guns, but China has the numbers?

freakscene's picture

The Chinese couldn't invent their way out of a wet paper bag.

LawsofPhysics's picture

I guess that depends if you have them all "in the bag" to begin with.  Are you at all familiar with the breeding patterns of rats, rabbits, or cockroaches?

Oh regional Indian's picture

More than that, are you familiar with Paper and Gunpowder?


ucsbcanuck's picture

You're thinking paper money ORI - paper was invented by the Egyptians well before the Chinese. Also, don't forget printing.

Also, add pasta to that list ORI.  

DosZap's picture

Called this one as soon as Obummer said NO.

Why?, does this have to go to Asia, even if Odmmma did not allow the pipeline?.

Is CANADA flexing it's muscles aginst the GREAT one?.

That can lead to nasty repercussions.

Chief KnocAHoma's picture

Sure they have the numbers. Try getting them North America with out us noticing or sinking them.

Their numbers are actually their problem. They all seem to want to eat for some reason.

Arcturus's picture

About 6 EMP's would sink us ASAP.

Hobbleknee's picture

They could sneak in on freighter ships, unloading at every port, and swarm us like ants before you could blink.

Chief KnocAHoma's picture

Ooooo ... the big bad boogey man.

China is not an offensive nation. Rarely do they attack, and right now they are more concerned with holding their country together and feeding the populus.

Their economy is on a sugar high, and they are very friendly too and even dependant on the US. Granted the Red Bastards from Russia are courting them, but as long as we control the seas, China will need us. Without the US Navy, you don't trade by the seas.

They don't want war with us. Now India, Japan? That would be a much more likely scenario.

Eagle1's picture

Dear Amerika

Hope you like my Change



qussl3's picture

Harper is asking for it.


pods's picture

Debka will come out with some stories soon about Canada's small but increasingly extreme Al-CIA-Duh branch, the Allah Akbar Hoser Brigade.


drink or die's picture

We have saved the planet by not burning that oil. 


What do you mean it doesn't matter if someone else burns it?



Lilguy's picture

Sort of an over-the-top emotional first reaction in Canada, I'd say.

Of course, the more oil Canada sells to China or Japan or elsewhere in Asia, the more of their current oil suppliers' oil will come to the US.  There is a market equilibrium out there, and huffiness won't change that. 

Heck, we may even find more oil IN the US!

freakscene's picture

Finding it is not the problem. Having a President that wants cheaper domestic energy consumption is the current problem America faces.

RockyRacoon's picture

Just to be a tad contrarian, sorry, it's my nature:  Can we recalculate that "cheap" oil by throwing in the costs of the military and the big oil subsidies, and the ethanol subsidies?   What does a gallon of gasoline really cost?   This ain't my area of expertise but I'll bet there are a few ZHers out there who have the numbers.

gookempucky's picture

Masked bandit-------hence refinery closing's----no margins


Capacity and # of refiners

put the link in twice just incase someone missed the first.

US does not have refining capacity for the XL pipeline let alone storge capacity.

been there done that's picture

Part of Obama's disaster plan, (to create one)

Schmuck Raker's picture

The US adds 'Uncertainty' to the already immensely popular 'Inflation' as a key Export.