OTTAWA – Former U.S. governor Howard Dean is adding his voice to a growing chorus of Americans warning of the potential backlash that could occur if Canada approves China National Offshore Oil Corp.’s proposed takeover Nexen Inc.
“I personally don’t think that’s a good idea for either Canadian or American assets,” Dean said in an interview on the Global News program The West Block with Tom Clark.
“But I think that, of course, each government with make their own decision.”
Dean, who served as governor of Vermont and once ran for the Democratic presidential nomination, said he “was very pleased” when, in 2010, the Conservative government blocked Australia’s BHP Billiton's controversial $38.6-billion takeover bid for Potash Corp.
“Prime Minister Harper chose, in my view, the right course when it came to potash,” he said.
The Conservatives will have to issue a decision on CNOOC’s $15.1-billion proposal to take over the Calgary-based oil and gas company by Nov. 11.
While Nexen’s shareholders approved the state-owned company’s takeover bid, the ultimate decision lies with the government.
And growing political backlash in the United States could play a role in Industry Minister Christian Paradis’ decision.
At issue are Nexen’s five royalty-free holdings in the Gulf of Mexico -- acquired between 1995 and 2000 when oil prices were low, in exchange for deep-water drilling.
Earlier this year, Democratic House of Representatives member Edward Markey issued a letter to the treasury secretary urging him to block the transfer of Nexen’s five leases to CNOOC.
A handful of Republican senators have also come out against the takeover, citing security concerns.
And former U.S. ambassador to Canada Gordon Giffin recently said he thought it unlikely the U.S. government would approve the transfer of royalty-free leases to another government.
“We have to be very careful of two things,” Dean said Sunday.
The first concern arises from potential business relations with Chinese technology firms, such as Huawei Technologies Ltd.
That, he said, would give China “an electronic eavesdropping mechanism right on out continent and our doorstep.”
Dean’s second concern lies in the potential for state-owned Chinese companies to take over natural resources in North America – a move that would have negative consequences in both Canada and the U.S., he said.
Another Canadian issue that has found its way into American politics is the proposed Keystone XL pipeline project.
The Republican presidential team has said its administration would approve the pipeline, which would run from Canada through the U.S. to refineries in Texas, on Day 1 in office.
Earlier this year, President Barack Obama said environmental concerns were at the heart of his decision to deny the pipeline’s proposed route. He asked TransCanada to go back to the drawing board, re-route the pipeline and re-apply.
TransCanada’s original proposal included a 3,100 kilometre route to move more than 700,000 barrels of oil per day from Alberta to 15 refineries through the U.S.
In September, the Alberta-based company submitted a report outlining a revised route avoiding ecologically sensitive areas.
Although Obama denied the original proposal, Dean said he believes the pipeline will ultimately be approved, regardless of which candidate makes it to the White House.
“I think it will be approved principally because oil is going to be brought out of the ground in Alberta, and I think most people think it makes much more sense to sell it in the United States than they think it does to sell it to China,” he said.
Original Article
Source: global news
Author: Tom Clark
“I personally don’t think that’s a good idea for either Canadian or American assets,” Dean said in an interview on the Global News program The West Block with Tom Clark.
“But I think that, of course, each government with make their own decision.”
Dean, who served as governor of Vermont and once ran for the Democratic presidential nomination, said he “was very pleased” when, in 2010, the Conservative government blocked Australia’s BHP Billiton's controversial $38.6-billion takeover bid for Potash Corp.
“Prime Minister Harper chose, in my view, the right course when it came to potash,” he said.
The Conservatives will have to issue a decision on CNOOC’s $15.1-billion proposal to take over the Calgary-based oil and gas company by Nov. 11.
While Nexen’s shareholders approved the state-owned company’s takeover bid, the ultimate decision lies with the government.
And growing political backlash in the United States could play a role in Industry Minister Christian Paradis’ decision.
At issue are Nexen’s five royalty-free holdings in the Gulf of Mexico -- acquired between 1995 and 2000 when oil prices were low, in exchange for deep-water drilling.
Earlier this year, Democratic House of Representatives member Edward Markey issued a letter to the treasury secretary urging him to block the transfer of Nexen’s five leases to CNOOC.
A handful of Republican senators have also come out against the takeover, citing security concerns.
And former U.S. ambassador to Canada Gordon Giffin recently said he thought it unlikely the U.S. government would approve the transfer of royalty-free leases to another government.
“We have to be very careful of two things,” Dean said Sunday.
The first concern arises from potential business relations with Chinese technology firms, such as Huawei Technologies Ltd.
That, he said, would give China “an electronic eavesdropping mechanism right on out continent and our doorstep.”
Dean’s second concern lies in the potential for state-owned Chinese companies to take over natural resources in North America – a move that would have negative consequences in both Canada and the U.S., he said.
Another Canadian issue that has found its way into American politics is the proposed Keystone XL pipeline project.
The Republican presidential team has said its administration would approve the pipeline, which would run from Canada through the U.S. to refineries in Texas, on Day 1 in office.
Earlier this year, President Barack Obama said environmental concerns were at the heart of his decision to deny the pipeline’s proposed route. He asked TransCanada to go back to the drawing board, re-route the pipeline and re-apply.
TransCanada’s original proposal included a 3,100 kilometre route to move more than 700,000 barrels of oil per day from Alberta to 15 refineries through the U.S.
In September, the Alberta-based company submitted a report outlining a revised route avoiding ecologically sensitive areas.
Although Obama denied the original proposal, Dean said he believes the pipeline will ultimately be approved, regardless of which candidate makes it to the White House.
“I think it will be approved principally because oil is going to be brought out of the ground in Alberta, and I think most people think it makes much more sense to sell it in the United States than they think it does to sell it to China,” he said.
Original Article
Source: global news
Author: Tom Clark
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