Ottawa puts up barrier to Sinopec bitumen exports

[CHIMO]

Ottawa says it will use its regulatory power to stop Chinese state-controlled Sinopec from exporting raw oil sands bitumen and refining it abroad to take advantage of looser climate-change rules.

Sinopec – China's largest refiner – has agreed to pay $4.65-billion (U.S.) to acquire ConocoPhillips' 9-per-cent stake in the Syncrude oil sands project. Under the Syncrude partnership agreement, the seven owners each receive a portion of production to be marketed as they see fit.

But the Harper government vowed during the 2008 election campaign that it would prevent any company from exporting raw bitumen – unprocessed oil from the oil sands – for upgrading elsewhere in order to capitalize on lower greenhouse gas emission rules. Yesterday, the government stood by that promise.

“The government is committed to implementing our campaign pledge,” said Andrew MacDougall, a spokesman in the Prime Minister's Office.

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/ottawa-puts-up-barrier-to-sinopec-bitumen-exports/article1534790/

[daleo]

1. I guess the U.S. wants the upgrading jobs. n/t

[CHIMO]

2. It Does

Seem like the corporations rule. The value added for the new plants is going south. The corporations win.
In the case with China, the government is the corporation and this appears to be a no no.
How different from a few years ago when the trend was to keep as much value added with the owners of the resource.

We will probably have to buy Venezuelan heavy oil and upgrade it.

[daleo]

4. The CO2 is going to added to the atmosphere, wherever it is done

So it might as well benefit Canada, by having the upgraders here. I believe U.S. corporations want it done in the States, where they have some relatively inactive upgraders, that normally upgrade heavy oil from Venezuela.

[Bragi]

3. Do I trust the Harper government less on this, or China?

Tough choice.