U.S. law puts chill on oil sands [trade dispute with Canada?]

The Globe and Mail ^ | 6/24/08 | BARRIE MCKENNA AND DAVID PARKINSON

[doc30]

WASHINGTON AND TORONTO — It's just one sentence buried in an 800-page U.S. energy bill that passed into law last December.

Yet it has morphed into a potential threat to Canada's oil sands boom, a contentious political football in Washington, and an early warning sign of an epic environmental battle over bitumen.

Stripped to its bare essentials, Section 526 of the U.S. Energy Independence and Security Act of 2007 bans federal agencies from buying alternative fuels that produce more greenhouse gases than conventional oil. This would include purchases by the military and the postal service - far and away the two biggest consumers of fuel in the United States.

Producers are concerned that Section 526 could represent just the tip of the iceberg, heralding even tougher environmental demands from U.S. lawmakers that will push the issue beyond just government supply contracts and jeopardize the oil sands industry's massive growth plans into the U.S. market.

[doc30]

The author of this bill, Waxman, explicitly states it's to keep Canadian oil sands out of the U.S. The problem is that tar sands oil is co-mingle with all the oil coming out of Canada, the largest supplier of oil to the U.S. With this law in place, U.S. refiners won't accept it in case it can't be sold. That means the Dems are closing the tap on our biggest supply of oil in order to stop global warming (explicitly cited by the dems) and to remove incenstives to stay on oil. It also has the prospect of gutting NAFTA.

[RightWhale]

Oil is the point of GATT/NAFTA. Oil is the world currency, and the North American currency. Amero? Oilo.

[Wolfie]

Not to worry. I’m sure we’ll vote them out. (Ha! I crack myself up sometimes).

[Jeff Chandler]

Not to worry. I’m sure the Republicans will effectively exploit this Democrat political vulnerability. (Ha! I crack myself up sometimes).

[The South Texan]

You see this. Our friends in the US Democrat Party have screwed the American people again.

[agere_contra]

Wow Waxman. Way to destroy two economies at once. Epic stupidity, except he knows very well what he’s doing

[TruthConquers]

This is just amazing!!

They really really really want to destroy this country and how we live.

Will they succeed?

They just might, enough Americans are asleep at the wheel, and the indoctrination prisons called schools have accomplished what they set out to do:

to POLITICALLY “socialize” Americans.

[steelyourfaith]

 

Beam me to Planet Gore !

[listenhillary]

The Canadian economy will do fine. Other countries aren’t self destructing with stupidity and will buy the oil, gas from tar sands.

[Brilliant]

“Wow Waxman. Way to destroy two economies at once.”

The America haters like Waxman are carrying water for the Iranian Mullahs, who will be delighted when America is destroyed.

[MD_Willington_1976]

The Chinese are all over the tar sands in Alberta and all over the Uranium mines in Saskatchewan... USA better get on the stick and become trade partner #1...

[thackney]

With this law in place, U.S. refiners won't accept it in case it can't be sold.

This doesn't mean it cannot be sold in the US, only that it cannot be sold directly to the federal government.

[okie01]

The author of this bill, Waxman, explicitly states it's to keep Canadian oil sands out of the U.S.

Isn't it amazing how $4/gal gasoline has caused the Dems to actually dig in their heels and do everything they can to make it worse?

It's as if they've chosen to fight a battle for survival over "the environment".

I don't know that's a battle they can win. Of course, McCain and the Republicans will have to rise to the occasion.

No sure thing...

[Wolfie]

How about a bet? Waxman never loses an election. He’s in until he retires or drops dead.

[NVDave]

Wouldn’t it be grand if the oil industry quit selling to the US government?

“What’s that? You wanted how many train cars of JetA for the VIP fleet? I’m sorry, but this rule says we can’t sell fuel to you... and golly, we’ve been so swamped with calls looking for our products, why gosh, we just haven’t had time to segregate fuel coming from Canada off to one side to prevent it from being sold to Uncle Same... so you’ll have to get fuel for the VIP jet fleet from somewhere else. Maybe call the Arabs of Uncle Hugo.

Thanks for calling... toodle-oo.”

Refiners can no doubt get better margins by not selling on GSA schedules now.

[zek157]

no problem, they cannot sell oil to the feds, everything remains the same to the private sector? This falls into the so what category, until they totally ban such imports.

[MediaMole]

Does Waxman know just how many US jobs have been created by the oil sands projects?

There are companies in the US working 3 shifts of highly paid, skilled workers turning out machinery for the oil sands projects.

It’s typical of the rats that they cater to the unions, but stab union workers in the back whenever they can.

[Oldtory]

Very True. There will always be a world market for the oil sands oil and other Canadian petroleum products. Also true that many American companies and workers benefit greatly benefit. Not all oil going to the US is from oil sands. If Obama and the left want to get tough on Nafta they should be prepared to lose the biggest and by far the most secure source of oil and natural gas. As a Canadian I would love to see the push to open up and renegoiate Nafta- the only loser will be US workers and consumers. The only trouble with Nafta is the ill advised decision to let Mexico in- that low wage economy is taking both Canadian and American jobs.