WTF Journal: American's Eyeing Devalued Canadian Oil Assets?

Well now isn't this interesting? The Conservatives are busy devaluing Canadian companies via royalty trust tax changes at the federal level and royalty reviews at the provincial level. Meanwhile the others are flying above the carnage; waiting their day to eat the tasty carcasses which will secure their own future energy supply.

Buffett, who has made substantial resource investments this decade, after a history of avoiding them, is now interested in the Alberta oil sands. His rationale is that it is a known resource, says Hull, who manages money for clients of Berkshire Securities Inc., recently acquired by Manulife Financial Corp.

In contrast to speculative drilling, oil-sands projects are mining operations where the size of the reserves is known. One can calculate with relative certainty the breakeven requirements over 10 years. And production costs tend to drop as the extraction and processing technology improves.

The amazing thing is that there are Conservatives in Alberta support; are actively cheering for Americans to take over Alberta's oil industry.

I have nothing against Americans and if they step in to Canada's energy sector the are only doing what is best for their nation. The question I have is why Albertans and Canadian politicians aren't doing the best for our nation. The motivations for their actions may be manifold, for example there may be some realpolitic going on. By that I mean dealing with a powerful nation in a practical manner rather than on the basis of political doctrine or ethics. In other words, capitulate quietly and without giving a public face to the capitulation rather than risking potentially very nasty conflict in the future in an energy starved world. I might be able to be talked into that as a wise policy, but if that is the policy it should be openly on the table as a democratic choice.

As per the "actively cheering" comment I made, I'm not kidding. For instance this opinion was posted today:

For those who say they are going to be pulling out of their oil sands related investment in Alberta because of the royalty review - call Buffett - he is coming into the market. As an Albertan I would welcome him.

or those of you who will be leaving us, presuming you were not scaremongering or merely pulling our legs - good bye. I presume you will be considering transferring your efforts to Venezuela's oil sands. The weather is nice there even if the political and investmate climate is not. But it is a free country - at least in Canada...so do as you wish.

If the link ever gets broken or removed I have saved it for posterity here: