Canada energy firms seek China foothold
Canadian oil and gas producers and related energy technology companies are showing huge interest in tapping into Asian markets, China in particular.
In late April, energy companies from the provinces of Alberta and British Columbia made trips to China to meet potential Chinese clients. Alberta boasts tar sand fields and British Columbia extensive reserves of natural gas.
China National Offshore Oil Corp (CNOOC), China’s biggest offshore oil and gas developer, organized the Canadian delegation that consisted of 27 companies with solid expertise, including in the areas of shale oil drilling, pipeline construction and oil field waste management.
In 2012, CNOOC, the state-owned conglomerate, purchased Canada’s oil and gas producer Nexen Inc for $15.1 billion, making it the biggest outbound acquisition.
“In terms of investment, Canada welcomes investors from China. At present, some $650 billion in new investment is planned or underway over the coming decade through hundreds of major resource projects,” said Guy Saint-Jacques, Canada’s Ambassador to China.
Canada, the traditional oil supplier of the US, faces tough challenges amid the current global oil depression which has cut thousands of domestic jobs in the industry and a gloomy future about how to survive when its biggest energy customer, the US, becoming less reliant on imported crude oil.
Chinese energy experts believed that China, however, will need to continue importing oil and rely on stable supplies from overseas sources.
Despite the plunging crude oil price, it is said a good timing for China to develop options for the energy security in the future.
Han Hua, managing director of the Sino-Alberta Petroleum Center said “uncertainties still exist over the changing regional political situations in China’s main oil and gas sources, such as the Middle East and Myanmar.”
“But shipping from Canada safe,” he said.