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Originally Posted by LeftCoaster
Interesting point, but keep in mind that oil cos don't pay for any of that nonsense, so it doesn't factor into their cost/barrel at all. That's just the federal govt. doing them a solid I guess... keeps those campaign contributions flowing for sure.
Canadian oil offers a certain security, no doubt, but in the end the dollar always reigns king and when exxon has to shut down/hold projects due to demand shocks you can bet their prime analysis will be one of profitability.
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In China the government and the oil companies are one and the same, and in the US there’s a lot more communication between the oil companies and the government than people typically think about. Access to oil is a matter of national interest in the US, after all, and they’re not just going to put that in the hands of the oil companies. I have no doubt that the US government passes on intelligence, and advises the companies on the government’s plans. If the US plans on pulling back from the ME militarily, as Obama has suggested, I’m sure they would tell the oil companies well in advance, and essentially tell them to find other sources of oil. Or if the US government feels Venezuela will become progressively more unstable I’m sure they would pass that on to the oil companies as well, and also effectively tell them to find other sources of oil. Remember that Obama was backing the Keystone pipeline before all the “environmental” activists moved in. (And also note that it’s fairly easy to see that the protests have nothing really to do with the environment and everything to do with protecting these third world oil interests.) There is a reason why both the US and China want to switch to Canadian oil.