Free Markets, Free People
The Future Consequences Of Energy Stupidity
I’m not sure how else to characterize this in a strategic and national security sense:
Canada, faced with growing political pressure over the extraction of oil from its highly polluting tar sands, has begun courting China and other Asian countries to exploit the resource.
The pressure is coming from the United States. The “pollution” is carbon. But the bottom line is the tar sands are going to continue to be exploited in Canada. The question is, to whom will the oil extracted go?
With the US backing away, the answer, apparently, is China.
In the most significant deal to date, the Canadian government recently approved a C$1.9bn (£1.5bn) investment giving the Chinese state-owned oil company PetroChina a majority share in two projects. Prime minister Stephen Harper said: “Expect more Chinese investment in the resource and energy sectors … there will definitely be more.” China’s growing investment in the tar sands is seen in Canada as a useful counter to waning demand for tar sands oil from the US, its biggest customer. The moves, which have largely gone unnoticed outside north America, could add further tension to efforts to try to reach a global action plan on climate change.
The projects, which will begin coming on line over the next decade, are seen as crucial to a long term strategy of finding new sources of energy as China’s economy continues to expand.
How about that … a country with a “long term strategy” in which it seeks sources of new energy for future growth. Not so in the US where Ken Salazar’s Interior Department seems to be using every means available to it to slow down the possibility of finding and bringing new carbon based resources on line for future consumption:
The Interior Department has informed Congress that it will take over two years to complete an environmental study needed to allow major seismic surveys of Atlantic coast oil-and-gas resources – a timeline that industry groups allege is too slow.
In an early February letter to House and Senate appropriators, Interior provides a timeline for completing a “programmatic environmental impact statement” on the effects of seismic testing and other assessment techniques.
It anticipates a “record of decision” – which is the final agency sign-off – in mid-April of 2012.
If I’m not mistaken, that will put us 4 years into the decision to allow drilling in the OCS. And, of course, seismic surveys and their effects are well known and have been for decades. The seismic surveys would update decades old surveys.
The point, of course, is these new Interior requirements completely derail the timeline established by the Interior Department in 2007:
Interior’s 2007-2012 offshore leasing plan calls for a lease sale off Virginia’s coast in 2011, although the sale could be delayed.
No company is going to bid on leases until those seismic surveys are complete.
The long range consequences for the US of these sorts of short sited policies should be obvious. And I don’t expect them to get any better any times soon despite the promises President Obama made in his State of the Union address.