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article imageChina and Canada meet for Keystone XL pipeline partnership

By Nancy Houser     Jan 25, 2012 in Environment
China has been looking at Canada's oil, gas and minerals for quite awhile now, desperately needing resources for its rapidly expanding nation. Calling it a "win-win" energy pact, China feels the oil partnership would become a global example.
Since President Obama and his Administration have turned down the $7-billion pipeline project that would have transported oils and crude to U.S. Gulf coast refineries, Canada's prime minister has turned to China and its Asian neighbors as new oil markets for its country's pipeline. This would be a good deal for China, as China is more than desperate for Canada's oil to fuel its booming economy.
In the last three years, the Obama administration has opened up millions of new acres for oil and gas exploration. In his State of the Union Address on January 24, 2012, President Obama stated he is further directing his Administration to open over 75% of the nation's potential offshore oil and gas resources.
This would leave the pipeline directly open to the China market, with the conservative Canadian government needing to see approval of the Northern Gateway pipeline to the British Columbia coast for shipping to Asia its oils and products. The decision would also prevent a U.S. spill-threat to the massive Ogallala aquifer due to the pipeline covering the nation -- the major source of drinking and irrigation water for six states including much of America’s farm and ranch land -- from the Dakotas to Texas.
The win-win energy pact between China and Canada is also a win-win situation between China and the United States. Currently, China imports about half of its petroleum. Without a miracle happening, it will be forced to import two-thirds of its oil for its economy to keep going.
“Without that oil China’s whole economy will grind to a halt. So China must find and secure new sources of supply for oil -- all in an increasingly unstable world. In this crusade for black gold China is already jostling with the superpower that, for now, is still the primary consumer of oil: the United States, according to Bold Nebraska.
Canada's Prime Minister Stephen Harper is preparing for a return visit to China, to meet with China's ambassador to Canada, Zhang Junsai, in two weeks. On the table will be Alberta's vast oil reserves and Canada's Keystone XL pipeline, both vital to China's growth and booming economy.
According to Canadian Business, "China is undergoing rapid industrialization and urbanization, and its demand for energy and resources is simply huge. Canada, on the other hand, is rich in energy and resources, which also boasts for its stable political situation as well as favorable conditions for investment," Zhang wrote in a 1,100-word statement that he penned in response to an interview request.
Unfortunately, just weeks before Canada's prime minister will be leaving for China, there has been an "outspoken attack on China's 'abhorrent' treatment of religious minorities by Canada's foreign minister, John Baird, on Monday, just weeks before Prime Minister Stephen Harper goes to Beijing in a bid to sell more oil," reports Yahoo!News.
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