Quote:
Originally Posted by Stay Golden
You don't sell ownership of your resources period. If other countries are foolish enough to do that, its on them. You maintain majority control of what are your borders resources.
Once China has the ownership of the resources they can distribute it however they want to and they will.
Simple example of ownership lease economics look no further than the Stampede board, they will retain the ownership of all their land for as long as possible. Their land is their most valuable resource.
The ownership of the energy exploration and ditribution is Nexen's raw value. If you don't think that Nexen has major rights in the Oilsands.
Drive up and see for yourself.
Long Lake, Kinosis, Hangingstone and 7% interest of Syncrude which alone provides Nexen 350,000 of capacity b/d
Nexen owns about 300,000-320,000 acres in the Oilsands.
There are other sites that Nexen has not developed that they have land holdings like Meadow Creek, Cottonwood, Leismer etc.
Far from small production and the future potential.
The Feds need to axe this deal and quickly.
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Canada hasn't sold ownership of the resource. They sell leases and licenses.
And most of Canada's resource companies are owned by outsiders. Americans, Europeans, Arabs ect. all own oil and gas companies that operate in Canada. Even state owned companies. Canada still owns the land. That hasn't changed one iota. Canada still plays the role of the Stampede board, the Chinese are merely trying to be a business owner that leases from them. It is the best way to actually get value from your land without selling it.
To say no to this deal because of what you stated shows two things.
One: You don't know what the situation is currently. This is not unprecedented.
Two: You are scared of the Chinese specifically, and are singling them out for special treatment.
We treated the purchase of Harvest to the Korean national oil company different than we are treating this. Or how about the acquisition of three separate producing companiesby the Abu Dhabi National Energy Company aka Taqa? Why is it that we should single out the Chinese when we didn't single out the Arabs, or the Koreans?
Or perhaps you think that the Oilsands are a special case? Then why let a French, or British, or American firm own anything in the Oilsands? Because they do. In fact, if it weren't for these foreign firms, the Oilsands would not have been produced when they were. It took a while for Canadian firms to catch up with many of the foreign multi-nationals. Total, a French firm, is one of the biggest foreign producers in the oilsands. And they own the whole company.
This is just how the world works. Countries that try to block this kind of ownership aren't doing very well, whereas the ones that work together in partnership do.
Besides, you are looking at this the wrong way. If a large state owned Chinese company purchases large assets within your country, they are integrating themselves with you. This is a good thing. You don't purchase large controlling interests into a country you are being belligerent with, the likelihood of you loosing your entire investment is huge. Them doing business here is the best thing that can happen to Chinese-Canadian relations. It gives us a greater voice when dealing with China. It means that we are of value to them, in a real, and tangible way. Plus, it means that they are investing money into Canada, contributing to our growth and prosperity because they will benefit from it.