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No nation is more thirsty for Canadian oil than China.
He argues that without a predictable United States market for Canadian oil, and a major new pipeline to deliver it, the oil sands project would be crippled.
And for Nexen, which is based in Calgary, the deal will provide an alternative to a stagnant United States market, where prices for Canadian oil have been weak.
The immediate problem for Canadian oil producers is a growing glut of oil in Cushing, which is currently the final destination for their production.
Officials in Washington repeatedly rejected and parried requests for meetings with TransCanada executives even while trying to placate Canada; Keystone XL has the strong support of the Canadian government and would provide a lucrative new outlet for Canadian oil.
China's growing energy needs and the prospect that an environmental backlash in the United States against the oil sands might hinder access to Canada's traditional market are making the idea of a trans-Pacific market for Canadian oil increasingly attractive.
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President Obama's refusal thus far to approve the Keystone pipeline project has made Prime Minister Stephen Harper's conservative government turn to China to secure an export market for Canadian crude oil reserves.
Although it was recognised that for the pressure effects, considerable depth would be required which ruled out in situ upgrading for the Canadian oil sands, the possibilities for subcritical enhanced cracking were not recognised (Offeringa et al. 1981).
China is making its biggest and boldest grab for overseas energy resources yet in a $15 billion deal for a Canadian oil producer.
Among them are David Wilkins, a former United States ambassador to Canada who lobbies for the Canadian oil industry, and Stephen Rademaker, a former State Department official who lobbies for the defense contractor General Dynamics.
The announcement also raises questions about a $15 billion offer from the China National Offshore Oil Corporation, or Cnooc, for the Canadian oil producer Nexen and could weigh on other Canadian companies hoping for foreign investment to tap their energy reserves.
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CEO of Professional Science Editing for Scientists @ prosciediting.com