NAFTA requires Canada to send 2/3 of its oil to the US, so a pipeline to their West Coast to ship to Asia will reap limited reward
And, you can bet there are folks ready to take Canada to NAFTA Court if they do not honor NAFTA US quota. Those groups who sue cities for “Buy American” ordinances will be suing Canada over oil
Canada is quite upset over Keystone, and rightfully should be
peakoil.com/forums/the-russia-natural-gas-thread-merged-t15221-160...
Nafta requires Canada to export a fixed proportion of it’s production to the U.S.. End of Story. The number is about 60%
Looks like Canada may be screwed unless they can produce lots of crude really quick.
NAFTA requires Canada to send 2/3 of its oil to the US
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FALSE.
Article 605 of NAFTA has been interpreted by some to mean that Canada is required to sell a certain percentage of its energy output to the United States, even in the face of a severe domestic shortage. Moreover, they argue that NAFTA prevents this percentage from falling over time.
Neither of these statements is true. Canadian producers are free to sell as much oil as they wish to whomever they wish, including, for example, overseas customers. As a result, the share of total output exported to the United States can rise or fall according to the normal forces of supply and demand.
The only condition that NAFTA imposes on Canadian energy products is that all buyers in North America must have equal rights to buy those products.
http://www.parl.gc.ca/Content/LOP/researchpublications/prb0633-e.htm