Canada’s Oil: Iran Sanctions, China, and the United States.
My analysis for JINSA, in The Sentry:
Here’s the “unmistakable message” the Canadian government is giving the United States: “You’re yesterday, China is today, and if you want to do any oil business with us then you’ll have to be prepared to do business with the Canadian subsidiaries of Beijing’s overseas acquisitions arms, which also happen to be the most notorious Iran sanctions-busters in the world.”
. . . Canada’s oil companies have been largely foreign-owned for decades, but since 2004, Beijing’s state-owned enterprises have been easily outpacing American companies in their investments in Canada’s oil sands. Petro-China, Sinopec, CNOOC and their sister corporations – all run by the Chinese Communist Party, which is adamantly opposed to U.S. led sanctions – have acquired at least $30 billion in Canadian energy-sector properties.
. . .Canadians and Americans are perfectly entitled to circulate amusing urban legends amongst themselves if that’s what it takes to make politics interesting. But if it’s a war with Iran we’d rather avoid and a nuclear-armed Khomeinist tyranny we’d prefer not to have to confront, the CNOOC-Nexen bid might present an opportunity to stop telling ourselves fairy tales and start getting serious for once about sanctions, and about Beijing.