The Shotgun Blog
Wednesday, April 30, 2008
Congress did WHAT?!?!?!
I can't believe I didn't notice this earlier, but the U.S. Congress essentially barred the federal government from using Albertan oil. This is nothing less than a kick in the groin to our best friends in Canada.
I'm appalled and embarrassed.
The geniuses who came up with this are Congressmen Henry Waxman (think David Suzuki with less hair) and Tom Davis (take your typical Red Tory and give him a really weak Dixie drawl).
I don't know how many Albertans are aware of this, but they should be outraged. Rest assured any Canadian who gives these two clowns the rhetorical two-by-four they deserve will be thanked by us Americans.
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Don't take it so hard DJ. I've been waiting for the other shoe to drop. At least the knives didn't come from a supposed friend.
The last time the saudis felt threatened, they dumped the price of crude to $10. This time they think they can have their cake and eat it. We'll see if the "developing countries" can keep paying these high prices. I suppose China can always starve a few million people to keep their currency bouyant.
Posted by: dp | 2008-04-30 1:22:31 PM
We've been hearing from the saudis for some time already as you can see.
All the while, they're buying up hotels and other properties in Alberta. They seem to be manipulating oil prices and real estate prices at the same time.
So there's a battle for control of Alberta happening under our noses between the Saudis and the Chinese. Who could have predicted this?
Posted by: dp | 2008-04-30 1:39:44 PM
Not too surprised you missed the story, I didn't read about it in the Canadian media but in a March article in the Economist. Bud don't worry DJ, Gary Mar is on the case.
Yesterday he was interviewed on Politics with Don Newman. Apparently, whether the Energy Security Act will affect US Government purchases of oil sands oil depends on whether it is considered an alternative or conventional energy source. Mar claimed that Waxman's own interpretation was that oil sands were not alternative energy and seemed very optimistic that this was the interpretation which would be settled on. The bill has already been passed and my guess is that it is up to the Department of Energy to interpret the provisions.
Posted by: Kalim Kassam | 2008-04-30 1:48:18 PM
While this is probably mostly symbolic, my guess is it will not change much. Oil prices are set based on market conditions and the less one customer buys from one country, the more there is for another country.
Perhaps the US will prefer buying from Iran, or more from Venezuela.
Posted by: TM | 2008-04-30 2:02:55 PM
I've been hearing some responses from oil company exec's to the democrats proposals to tax the recent windfall profits. One thing they mention is the moratorium on reserves in the US. The idea that the US has run dry of crude oil seems to be a misconception.
The massive coal reserves in Montana alone could be a bigger source of (synthetic) fuel than Alberta's oilsands. They estimate a price of $55 a barrel to produce is pretty reasonable by today's standards.
If China ever gets around to hiring some experienced people to exploit its reserves they could probably become much more self-sufficient.
Russia has huge reserves that are being squandered by 70 year old technology.
I think (and hope) that the west will have the last laugh. Once the middle east sells off its only resource, they'll go back to being camel herders with no toilet paper.
Posted by: dp | 2008-04-30 4:50:12 PM
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