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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Oil Sands Dependence on the USA ?

Oil Sands Dependence on the USA ?

posted on Jan 21, 2009 09:45AM

A number of posts have indicated that the future of the Candian Oil Sands is dependent on the USA purchasing the products of the oil sands.

Under the present structure of doing business, it's a benefit to both Canada and the USA to have the oil sands producing oil which is sold in the USA.

Presently, the oil sands produces in excess of 1 million barrels a day and Canada is the buggest supplier of oil into the U.S.

However, should the U.S. not wish the oil sands products, those products can be sold to any other users in the world. It may take some infrastructure development but if the new president doesn't wish any oil sands oil, or if the Governor of California continues to be critical of Alberta oil sands oil, there are certainly other places in this world that would probably be very happy to use the oil which is produced from the Alberta oil sands.

Presently, there is a free trade agreement called NAFTA. However, if the U.S. wants to amend the agreement to choose what they would like to trade and what they won't trade, then that is the American prerogative. However, I really don't think it's in the American interest to open that up because Canada has unlimited resources such as water, lumber,materials and minerals, etc. which the U.S.A. needs.

Though we have a new President with good intentions, he should probably look at his own country and compare it carefully with Alberta. He will see that Alberta is the world leader in attacking the CO2 problem and other environmental concerns.

For example, the amount of work that Connacher had to do to get Algar approved was largely a result of the extremely high standards that Alberta places on the environment.

Before the new President looks outside of the U.S.A., he should take a look at what he can do to improve the U.S.A. The U.S.A. has been a good friend of Canada but we can't turn our back on the fact that the U.S.A. is largely responsible for the present world crisis as well as an unenviable record with regard to the environment.

For example, there is Al Gore who has written a book about global warming. And yet it's my understanding that he has a very large house which does not appear to be environmentally friendly. And when drives up to a speaking engagement, he does so in some very environmentally unfriendly vehicles. Do I sense a bit of hypocracy there? And the Governor of California, talk about hypocracy, it's my understanding that his State is the most polluted area in all of America. There is a tendency for people to look in other people's back yard, but I think Arnold has lots on his plate if he just looks at his own State. (Which also seems to be running out of money.)

I think President Obama has one area that he should focus on. And that is the investigation of the American financial institutions which have basically cost the world trillions of dollars.

Again, if President Obama does not wish oil sands oil, he can just say so and I'm sure that the marketing of oil sands products can be diverted away from the U.S.

And I also notice that it appears that President Obama doesn't wish to take oil from Venezuela, or be dependent upon the oil from the Middle East. Well then, there's going to be a lot of drilling around the U.S.A because the other forms of energy will not do alot of what oil has done for the U.S.A.

So, in short, the U.S.A. can get its oil from wherever it wishes, but it will need lots of oil for years to come.

Best Wishes,

Lynn

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