Obama fucked us

Cunt Smasher

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Aug 26, 2005
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Won't hear about this on the network news, but it's real.
http://news.investors.com/Article.aspx?id=606670&ibdbot=1
The Winnipeg Free Press reported that Canadian Prime Minister Stephen Harper warned Obama the U.S. will have to pay market prices for its Canadian oil after Obama's de facto veto of the Keystone XL pipeline. Canada is preparing to sell its oil to China.

Until now, NAFTA had shielded the U.S. from having to pay global prices for Canadian oil. That's about to change.

Canada has also all but gone public about something trade watchers have known for a long time: that the U.S. has blocked Canada's entry to the eight-way free trade agreement known as the Trans-Pacific Partnership, an alliance of the U.S., Australia, New Zealand, Vietnam, Malaysia, Peru, Chile, and Singapore. Both Canada and Mexico want to join and would benefit immensely.
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U.S. media dutifully reported Obama's false claim that Canada, our top trading partner, is too protectionist — for whom, we don't know. Malaysia maybe? — even as it's good enough for NAFTA, the trillion-dollar trade treaty that is the world's largest.

"Every country that is participating is going to have to make some modification," Obama told the press.

Canada's take was far more blunt: "Our strong sense is that most of the members of the Trans-Pacific Partnership would like to see Canada join," said Prime Minister Stephen Harper, in essence revealing that it's the Obama administration alone that is blocking Canada, and suggesting that payback on energy was coming.

So much for Obama's early claim that he was going to clean up the "mess" President Bush left with our allies and make friends with the world. One amigo muscling another out of a trade alliance isn't friendly.
 
Aug 11, 2005
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T. Boone Pickens tells Obama what to do
 

MayrMeninoCrash

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#4
Whoever wrote this article doesn't understand the concept of a fungible commodity.
 

steve500

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And how the hell is Canada planning on shipping the oil without pipeline?

The reason we get their shitty heavy sour crude for cheap is because us and China are the only ones who can efficiently refine that crap.

Without the pipeline, it is better for them to lower the price and have us buy it.

With the pipeline, the oil has an easy route to the port of Houston = the market rate for Canadian oil goes up.

Brent crude & similar oil is a commodity, but this isn't the same stuff, or even a viable substitute for the majority of oil consumers.
 

Yesterdays Hero

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#7
And how the hell is Canada planning on shipping the oil without pipeline?

The reason we get their shitty heavy sour crude for cheap is because us and China are the only ones who can efficiently refine that crap.

Without the pipeline, it is better for them to lower the price and have us buy it.

With the pipeline, the oil has an easy route to the port of Houston = the market rate for Canadian oil goes up.

Brent crude & similar oil is a commodity, but this isn't the same stuff, or even a viable substitute for the majority of oil consumers.
Let's go down the list.

1) Canada will ship the oil the same they have since shipping oil was viable, xl pipeline or not (feel free to thank Obama for the veto on said pipeline)

2) Without the pipeline, better to lower the price and have the US buy it. That's smart. "Hey Canada, we don't want the pipeline that'd give Canada and the US more jobs, and you can't come into the Trans-Pacific Partnership. But you'll lower the price of oil and just let us have it right? We can have the cake and eat it to, ya?" Brilliant!

Again, wasn't Canada that shot the idea down. Obama said 'No pipeline' and it's been inferred that he doesn't want Canada in the TPP. So Canada figures 'Fuck it then. I'll take my ball and go home. Or better yet, I'll stick to the US and charge them the same price we'd charge the slanteyes.'

Can't blame Canada when Obama seems to the one that's all too happy to cut off the nose to spite the face.
 

Norm Stansfield

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Mar 17, 2009
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The problem began when we replaced self interested private individuals with politicians in charge of the energy industry. From that point on, expecting anything to go well is retarded.

It's also retarded to elect a socialist President, and then expect him to facilitate trade by expanding free trade agreements. Sorry, Canada, you're going to have to wait for the next President on that one. Obama is not a fan of free trade.
 

MayrMeninoCrash

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#11
I fail to see the relevance. Oil was equally as fungible when we were getting it from Canada at a reduced price.
Who is China buying oil from now? And what incentive does China have to buy Canada oil versus the savage oil they are currently getting? What's in it for China?
 

Norm Stansfield

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#13
Who is China buying oil from now? And what incentive does China have to buy Canada oil versus the savage oil they are currently getting? What's in it for China?
In the end, fucking with this pipeline (which will be built, once this piece of shit is out of office) doesn't make all that much of a difference, for the price of oil and gas in the US, or for the availability of oil overseas (including China). In the long run, the price is set by global supply and demand, not what some local thug who fancies himself the leader of the free world does to a pipeline project.

The real difference is in the economic boost another pipeline would've given the US economy. It would've created productive jobs for a change, in several sectors.
 

Neon

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Who is China buying oil from now? And what incentive does China have to buy Canada oil versus the savage oil they are currently getting? What's in it for China?
Well, it could easily fill in the void that is slowly being created by the Iranian sanctions (Chinese imports from Iran are already down 20%). Just look at this story from today ("A major Chinese ship insurer will halt indemnity cover for tankers carrying Iranian oil from July, dealing a blow that narrows the insurance options for Tehran's main export already constricted by payment barriers caused by Western sanctions."). I think the Chinese could easily spare some room for Canadian oil.
 

MayrMeninoCrash

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#15
Well, it could easily fill in the void that is slowly being created by the Iranian sanctions (Chinese imports from Iran are already down 20%). Just look at this story from today ("A major Chinese ship insurer will halt indemnity cover for tankers carrying Iranian oil from July, dealing a blow that narrows the insurance options for Tehran's main export already constricted by payment barriers caused by Western sanctions."). I think the Chinese could easily spare some room for Canadian oil.
Saudi Arabia is already gearing up to make up for oil lost to Iranian sanctions
 

MayrMeninoCrash

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#17
Great, as if the fuckin sauds weren't already deep in america's gapping asshole.
Like Neon said, China's looking for oil. We don't buy any Iranian oil so we won't need to buy any of Saudi Arabia's makeup oil.
 

Motor Head

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#18
They will build the pipeline. Nebraska has more or less given the go ahead with the new routing of the pipeline. The Chinese will get the oil with or without the pipeline because they are willing to pay more for it. At least that's what I've read on wackbag, so it must be true.
 

Neon

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Saudi Arabia is already gearing up to make up for oil lost to Iranian sanctions
The same Saudis who have people clamoring to boycott Russian and Chinese goods because of their support for Assad? This is more complicated than you think. I'm not saying it'll definitely happen, but I'm saying that Canada is a far more stable source than Saudi Arabia, particularly because of their reliance on the Strait of Hormuz.

PS: I don't know how these things work, but is oil is also not fungible because of the associated costs in shipping, tariffs, trade agreements, etc? I mean, the price of the crude itself is steady, but what about the overhead? Couldn't Canada make them a better deal than the Saudis?
 

lajikal

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Aug 6, 2009
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#21
Like Neon said, China's looking for oil. We don't buy any Iranian oil so we won't need to buy any of Saudi Arabia's makeup oil.
You think the sauds won't raise their prices to make up for associated costs and take advantage of their power and control of a bigger share of the world's oil supply?
 

MayrMeninoCrash

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#22
PS: I don't know how these things work, but is oil is also not fungible because of the associated costs in shipping, tariffs, trade agreements, etc? I mean, the price of the crude itself is steady, but what about the overhead? Couldn't Canada make them a better deal than the Saudis?
Considering it costs the Saudi's about five bucks to pump a barrel of oil versus about eighty bucks for Canadians to process a gallon of tar sand, I'd say the Saudi's would have the upper hand in any financial transaction regarding the sale of oil.
 

Neon

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Considering it costs the Saudi's about five bucks to pump a barrel of oil versus about eighty bucks for Canadians to process a gallon of tar sand, I'd say the Saudi's would have the upper hand in any financial transaction regarding the sale of oil.
But who carries the extra overhead? If that extra cost is on the customer (China), doesn't that negate the fungibility of oil? I'm legitimately asking because I know fuck all about international commerce.