Canada's Prime Minister,Stephen Harper,Made It Very Clear

Canada's Prime Minister, Stephen Harper, made it very clear after the Keystone XL pipeline was rejected by the U.S. that Canada would be seeking other markets for its natural resources. Indeed, he has wasted no time pursuing that goal, and is currently in China, hammering out deals for the country’s natural resources. The prime minister insists that it is in Canada's national interest to send oil and gas to Asia and he is therefore looking to sew stronger economic ties with the world’s fastest-growing economy. Harper has repeatedly said that building pipelines such as the proposed Northern Gateway oilsands pipeline to the West Coast is a national priority as Canada looks to ship its energy resources to Asia. Harper's trip comes just a few days after the announcement that PetroChina has agreed to take a 20% stake in a Canadian shale gas project in British Columbia owned by Royal Dutch Shell. This is just the latest investment that China has been making in U.S. and Canadian unconventional gas reserves as it seeks to reduce its reliance on dirty coal and oil imports. What does this mean for America's energy requirements and for valve and other manufacturers in the Americas? Will there be any mention of China's notorious rejection of intellectual property and copyrights in Mr. Harper's negotiations? Speculation is rampant about the direction the talks will take, as Harper is in China to sell more than oil. He has indicated in the past that he is anxious to work out a much wider trade scenario that follows a global pattern by government and business to lower barriers to trade world-wide, insisting that expanding Canada's trade horizons means more markets for Canadian goods and services. But just as the dream of opening up markets for goods made in America resulted in jobs lost south of the 49th parallel, the lowering of trade barriers has enabled the export of many Canadian jobs to low-wage jurisdictions. North American based valve manufacturers have certainly seen their own fortunes affected by the low cost goods coming from offshore. Harper seems almost obsessed to direct a good deal of Canada's energy infrastructure away from the United States, something that has inspired him to call those Canadians who want environmental protection equal to economic opportunity enemies of the state. He is intent on taking advantage of China's obsession with energy security by adding an oil pipeline to the natural gas line slated for exports to Asia by 2015. While it is true that domestic environmental and social roadblocks have slowed down his aspirations and the Chinese have been impatient about the delays in many pipelines, Harper remains undeterred. While short term economic gains are possible for North American manufacturers and laborers who would supply and build pipelines to export the oil and gas offshore, long term consequences of increased Canadian energy trade with China are largely unknown. Certainly it will be an economic boon to Canadian producers, but what effect will it have on future energy security for the U.S.? In the deal with Royal Dutch Shell, Chinese companies will undoubtedly gather much-needed knowledge and experience which can be used to develop the shale gas market in China, where there are huge reserves. What does this exchange of technology mean for valve manufacturers here in North America? What effect will that have on long term employment growth and quality? While the exploits of Canadian politicians are rarely of interest in the U.S., Stephen Harper's trip to China is one which should be followed closely. Source: valvemagazine.com