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American Fuel & Petrochemical Manufacturers President Charlie Drevna on how China’s largest oil company’s purchase of Canada’s Nexen will im...
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-- we're talking oil now it's facing -- China China's largest oil company unveiled a fifteen point one billion dollar Blockbuster deal.
To acquire Canadian energy producer next and if it goes through this would -- China's biggest foreign acquisition yet so what does this mean for the US with me now is Charlie -- not America.
-- -- petrochemical manufacturers president great to have you back on the show Charlie.
Good to -- -- most the prize for having me again.
So I remember would -- not.
You know what I covered it and I think it was 2006 when they tried to buy Unocal and politicians in Washington went bananas that China was gonna -- so many of our assets and couldn't possibly let this happen of course it didn't happen.
Now -- they moved on to Canada.
Is this a threat to us.
-- clearly didn't the Chinese understand that there are economic strengthen our economic future lies within being an energy power.
And they're looking -- worldwide.
-- to move to -- to find and develop resources now.
This this acquisition.
If -- -- becomes a comes to fruition but this is just one and a series of acquisitions that they've been doing over -- -- past several months years.
Locking up reserves right here in North America.
So I mean really mean that they're locking them op I mean are they going to produce the oil -- for themselves no that's not how the market works and what does it mean.
Really in dollar terms and in control terms that they would on this asset.
Well.
You know we have that they won't it now were were concerned about you know naturally abide by our reliance on foreign crude.
Well I mean if it's not on our own insurers.
And if -- if somebody else owns -- other than us to -- -- foreign that's foreign oil.
So what we need to do is I think you'd take you'd look at this thing.
You look what the what the Chinese believe and what that would this administration believes and it's a it's a tale of two nations in all due respect to dickens'.
We've what what we have here is the Chinese saying we're gonna run our factories were gonna run our autos we're gonna around our military our traditional fossil fuels -- oil.
And -- and that and while the Obama administration continues this this insane war on fossil fuels.
The irony here is a bitter irony is it may be is that China may be able to buy these very assets right here on our own backyard.
You kind of making the case that you know this is so this is -- our neighbor we imported tonne of oil from them and now -- China owns it it's as if it's Chinese oil and that they are then going to order for themselves or or control it in some -- but even if they did or that oil for themselves.
That frees up the barrels elsewhere in the world that they would have used for someone else to buy an oil is fungible so -- graphic here releases its somewhere else.
Well did did the idea though Melissa's that we need to be energy self sufficient here in North America we need to look to our good friends and neighbors -- -- you before.
To the north in Canada we need to -- those reserves and for us.
It makes absolutely no sense to allow -- beat -- mean we can't stop it but it makes no sense for us to to have China become an energy giant.
While we you know consider buying -- seven dollar a gallon oil -- -- gal.
Why certainly for that there -- a pipeline that one of the big reasons -- -- Why Canada's looking Asia is because of the whole problem with the XL pipeline right that that's that's my point exactly analysts you know we've we've thought turned our backs.
On our on Canada with the Keystone Pipeline we turned our backs 120000 jobs plus 1930 immediate jobs in the United States.
So what what do we expect to Canadians to do -- -- -- I -- for us to come to our sense is they've got their own.
Their own economics to look after so I mean this is is this a slap in the face the American consumer absolutely.
Well we have a choice we have a choice right now are we gonna continue down this path.
Of of a fantasy land.
Concerning our our our nation's energy security.
Or are we going until we I think to continue to allow.
Others to provide us with energy re going to be self sufficient it's it's really if it's just a -- let's face it certainly our own fault that is that is without a doubt Charlie -- thanks -- coming -- -- Backed -- shabby.
