By Aileen McCabe, Canwest News Asia Correspondent, Calgary Herald, May 18, 2010
Premier says China clearly on radar for Canada's energy sector
BEIJING — When Premier Ed Stelmach said in Shanghai this week, "our doors are open," it was a clear invitation for more Chinese investment in Alberta's oilsands.
In an interview Tuesday, the premier said that the world financial crisis means Alberta oil companies are looking for new investors and China is clearly on their radar.
Stelmach would not comment on how much Chinese investment might be enough or if too much might spark a backlash in Canada, as it has in other nations, but he firmly defended Alberta's right to accept as much Chinese investment as it wanted in the oil fields.
"The resource is owned by Albertans so the policy decision is one that is Alberta-based," he said.
There are still no oil companies in Alberta that are wholly owned by the Chinese, and the premier underlined that in all the agreements that have been signed with them, "none of this oil is going to China. It is developing oil reserves in Alberta, there is no doubt about it. There has been no request for a certain amount of oil to go to the country of China."
Stelmach said the Chinese "goal is to keep the price of oil reasonable and that is why they are investing in different countries.
"They just made a huge investment in Brazil, established oil fields, the Chinese have. So it is not only Alberta, they have investments everywhere."
He also argued that Alberta and China have "a reciprocal relationship."
"Alberta buys steel and specialized equipment, including for enhanced oil recovery, worth about $1.9 billion from China," he remarked.
China has made several major investments in Alberta oil companies working in the oilsands in the past year. The latest came earlier this month when China Investment Corporation paid Penn West Energy Trust $817 million for a 45 per cent stake in a potentially lucrative oilsands project.
Stelmach is in Beijing, along with British Columbia Premier Gordon Campbell and Saskatchewan Premier Brad Wall, to promote their "New Western Partnership" as a destination for Chinese investment and trade.
All three spent their day meeting with businesses and government agencies in a bid to boost trade for their new "region," which already accounts for 60 per cent of Canada's trade with China.
The focus was mainly on energy resources, agriculture and education. The provinces already enjoy considerable trade with China in all three areas, but the premiers clearly think there is room for expansion.
Stelmach said he was encouraged by the talks he had with the Chinese about Alberta beef, for instance, and he appeared to hold out high hopes for new market openings as the Chinese middle class grows more prosperous and adds more protein to its diet.
The premiers team up with Treasury Board President Stockwell Day on Wednesday to continue their efforts to bolster trade with China before taking their sales pitches to Japan on Thursday.
© Copyright (c) The Calgary Herald
