U.S., China Compete for Canadian Energy Assets

Japan’s presence in the Canadian shale sector increased this week with Tokyo Gas, Osaka Gas, Chubu Electric and JOGMEC all joining Mitsubishi in their Horn River shale joint venture with Penn West Energy.  The move coincided with a report from the BC Ministry of Energy and Mines that put an estimate of potential resources in the play at 61–97 TCF of gas with a mid-case estimate of 78 TCF. The new entrants will join existing Asian Pacific companies PetroChina, Mitsubishi and Korea Gas Corp in the sector.

WASHINGTON — Canada has taken action to protect the climate during the more than four years it has waited for U.S. approval of the Keystone XL pipeline, and there’s little more it can do in the short term, the country’s ambassador to the United States said. As the U.S. State Department delays approval of TransCanada Corp’s Keystone pipeline, which would link Alberta’s oil sands to refineries and ports in Texas, speculation has emerged that Canada could take further action on the climate to help make it easier for the United States to approve the project.

China has been hungry to power its country for more than 1.3 billion residents, and takeouts of commodity-related companies is one way to fill its tall energy order. We told you about one merger and acquisition (M&A) deal out of China. Last year, Sinopec acquired Canadian energy company Daylight Energy for $2.1 billion in cash, a whopping 120 percent premium to Daylight’s share price prior to the announcement. With this purchase, Sinopec gains access to more than 300,000 acres rich with oil and natural gas.

OTTAWA — U.S. President Barack Obama has chosen a political fundraiser from Chicago to be the new American ambassador to Canada, according to a media report. CBC reported Wednesday that Bruce Heyman, a partner at the investment firm of Goldman Sachs, has been asked to take the diplomatic posting and that he has accepted. His posting, yet to be formally announced by the White House, must still be confirmed by the U.S. Congress.

WASHINGTON — The State Department has reassigned its special envoy for closing the U.S. prison at Guantanamo Bay, Cuba, in another step away from one of President Barack Obama’s first campaign promises. Ambassador Daniel Fried is starting this week as the department’s sanctions coordinator, according to an internal notice, focusing on governments like Iran and Syria.

TORONTO — Debate over the role of state-owned enterprises (SOEs) in the oil-and-gas industry has been a big and emotional one and led to new restrictions in the oil sands. But a senior executive at one of China’s largest oil companies said future investment in Canada still boils down to one much more basic criterion: Does it make money?

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WASHINGTON — It will be a lively President’s Day long weekend for the folks here at the Canadian embassy. As many as 20,000 environmental activists are expected to march on the White House on Sunday to demand the death of Keystone XL, and embassy staff plan to be on the sidelines to hear what’s said up the street on Pennsylvania Avenue and do their own count of the protesters.