General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumschina begins oil extraction in afghanistan--debate topic?
In a surprising (if not quite shocking) move, late on Friday Canada blocked Petroliam Nasional Bhd.s C$5.2 billion takeover of Progress Energy Resources Corp. saying the bid by the Malaysian state-owned company "wasnt in Canadas national interests." As BusinessWeek explains, "in what investors say is a test case for the $15.1 billion bid by CNOOC Ltd. of China for Calgary-based Nexen Inc., the Canadian government said it was not satisfied that the proposed investment is likely to be of net benefit to Canada, according to an Oct. 19 statement from Industry Minister Christian Paradis."
While it is unclear precisely what would be of "net benefit to Canada" what is certain is that the Progress Energy move will crush investor spirits who in recent months have expected a flurry of foreign bids coming for local energy names, only to be left at the altar courtesy of government intervention. And while the outlook for foreign driven M&A in Canada has just been Ice-9'ed to a degree not seen since the BHP Billiton government-denied acquisition of Potash Corp (watch the arbs scurry out of Nexen at first trading opportunity), China is wasting no time, and is rapidly reorineting itself away from increasingly energy-protectionist governments and to "greenfield" national interest expansion opportunities. Such as Afghanistan. As Reuters reports, in a historic development, and in a key staking of regional energy claims, a Chinese oil firm, China National Petroleum Corp, has just started oil production in the country which still has thousands of US troops on the ground. Expect this issue also to suddenly be of paramount importance in next week's final presidential debate.
http://www.zerohedge.com/news/2012-10-21/historic-first-china-begins-oil-extraction-afghanistan
Spider Jerusalem
(21,786 posts)What's the argument supposed to be here? That the Afghan government can't or shouldn't allow oil exploration and drilling by China? That American oil companies should get first access? To what end, exactly? I'm not really sure how you can justify that sort of thinking beyond perhaps the nakedly nationalistic "but we've been fighting the Taliban there for ten years now so that should be our oil" argument.
amborin
(16,631 posts)The question has arisen repeatedly over the 10+ years we've been there--are we providing security while china extracts? Nonetheless, that this could be a debate question was mentioned in the article, and I was merely reporting that.