I Scream You Scream We All Scream For Ice Cream....
Or in this case, the sale of another Canadian oil asset.
Premier Rachel Notley traveled to China last week to tell Asia that Alberta is open for business. Meanwhile back on home turf China’s ambassador to Canada, Lu Shaye, addressed concerns to the Canada Chinese Business Council about a possible free trade pact stressing that Chinese companies would no longer be interested in Canadian oilsands assets.
Ouch. Rachel Notley said “There’s still a lot of interest in what’s going on”, but that’s not what recent selloffs are demonstrating. The international exodus, which the Financial Times coined as CanExit, began last month and Canadians have already witnessed multiple international companies exit. Royal Dutch Shell was the leader and soon after others followed – Marathon Oil, ConocoPhillips, and now Chevron – generating more than $30B in sales.
Some would argue these acquisitions are good for the Canadian economy. However, having these assets owned by Canadian companies threaten our economy because large international players are now investing in other energy regions and technologies proving there are more economically viable investment options. China is the latest country to be losing interest and jumping off the bandwagon.
Is Canada doing enough to keep its energy industry competitive? Are the days of Canada's big energy revenues melting away?
photo credit: wordswag