US Taxpayers to Subsidize $7 Billion ‘China’ Oil Keystone Pipeline?
'Canadian' Company Husky Energy bought Lima, Ohio, refinery in 2007
“Canada’s oil sands contain the world’s second-biggest oil resource after Saudi Arabia. Surface mining can extract around 20% of the oil and currently covers about 550km2, one third the city of Los Angeles. We are one of over 30 companies active in the oil sands and at our Athabasca Oil Sands Project we mine the resource and separate the oil from the clay, sand and water. It represents 2.5% of our total production. We continue working to limit the environmental impact of our operations.”
Who owns the Athabasca Oil Sands leases in northeastern Alberta? The oil which Americans may have to shell out $7 billion to subsidize the proposed Keystone pipeline. The connection between the Keystone pipeline and the Lima, Ohio, refinery owned by Husky Energy who owns ‘substantial oil sand leases’ in the Athabasca Oil Sands regions. Ohio, the home state of Speaker of the House, John Boehner.
In 2007, plans for a Lima, Ohio, refinery to be refitted to handle oil from Athabasca Oil Sands in northeastern Alberta. The Athabasca Oil Sands regions, the origin of the oil to be pumped through the Keystone Pipeline. The new owner of the Lima, Ohio, refinery–home state of Speaker of the House John Boehner (R)–Husky Energy, an ‘integrated’ Canadian company with ties to Hong Kong. Husky Energy holds substantial oil sands leases covering 510 thousand acres in the Cold Lake and Athabasca regions of northern Alberta, Canada.
“The pipeline system, proposed by the Canadian firm TransCanada, would transport crude oil from the Athabasca Oil Sands in northeastern Alberta to multiple locations in the U.S., including as far as the Gulf Coast of Texas. The Keystone XL would go through Montana, South Dakota, Nebraska, Kansas and Oklahoma, and the so-called “feeder pipelines” would connect it to rich oil fields in North Dakota and Montana.”
The current news, TransCanada is reconfiguring pipelines in order to solve the environmental ‘impact’ in the United States. One wonders how soon will there be an announcement a Keystone pipeline will reach Lima, Ohio?
May 2, 2007, Husky Energy To Acquire Lima Refinery From Valero Energy Corporation:
Calgary, Alberta – Mr. John C.S. Lau, President & Chief Executive Officer of Husky Energy Inc. is pleased to announce that Husky has reached an agreement to acquire the refinery in Lima, Ohio from Valero Energy Corporation. The purchase price will be U.S. $1.9 billion, plus net working capital. The acquisition is subject to regulatory approval and is expected to close by the end of the second quarter of 2007.
“The acquisition of the Lima refinery represents a significant step in Husky’s ongoing strategic move of expanding our downstream business and supports Husky’s objective as a fully integrated energy and energy related company,” said Mr. Lau. “This transaction is expected to have an immediately positive financial contribution to Husky’s earnings and cash flow.”
Husky will acquire the refinery through the purchase of all the outstanding shares of Lima Refining Company.
The Lima refinery has a throughput capacity of 165,000 barrels per stream day of light crude oil and produces gasoline and diesel fuels that meet U.S. clean fuel standards. The refinery processes primarily light sweet crude oil and also has some capability of processing heavy crude oil.
Husky holds substantial oil sands leases covering 510 thousand acres in the Cold Lake and Athabasca regions of northern Alberta, Canada. Production at Husky’s Tucker Oil Sands Project has commenced and development planning is proceeding for oil sands projects at Sunrise and Caribou Lake. Husky plans to review options for reconfiguring and expanding the Ohio Lima refinery to process heavy crude oil and bitumen, providing additional future investment in the community.
“Integration of the Lima refinery with future growth of heavy crude oil and oil sands production is part of Husky’s long term strategy to enhance returns to shareholders by capturing the complete value chain,” added Mr. Lau.
On the board of Husky Energy, several individuals from Hong Kong, one of two special administrative regions of the People’s Republic of China.
January 4, 2012, Wall Street Journal, PetroChina Buys Oil-Sands Project:
CALGARY—Athabasca Oil Sands Corp. said it was selling a 40% stake in one of its oil-sands prospects to PetroChina Co., a move that for the first time will give full ownership of such a project to a Chinese company.
Athabasca is selling its remaining interest in the MacKay River project in northern Alberta to PetroChina for 680 million Canadian dollars, or US$666 million. In 2010, Athabasca sold 60% stakes in MacKay and a separate development, Dover, to PetroChina for C$1.9 billion.
January 3, 2012, FP Energy, Chinese take helm of MacKay River oil sands project:
The friendly “divorce” announced Tuesday between PetroChina and Athabasca Oil Sands Corp. puts a Chinese company in charge of a Canadian oil sands project for the first time.
Is it ready?
Yes, says Zhiming Li, president and CEO of Dover Operating Corp., the company that will operate the asset on behalf of a PetroChina subsidiary, Cretaceous Oilsands Holdings Ltd.
In an interview, Mr. Li said Dover’s strategy is to establish itself as a Canadian company staffed predominantly by Canadians.
And,
“The unusual unwinding of the MacKay River joint venture doesn’t require federal approval since PetroChina, the largest of China’s state controlled oil companies, is already in control of the project.”
While you don’t actually say anything in this article, you just regurgitate other articles, it is clear you don’t understand the oilsands industry, its importance to the Canadian economy or foreign investments role in it.
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Too bad Lima is a light, sweet refinery dumbass.
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LBG1 Reply:
February 4th, 2012 at 12:09
ironman2:
“Husky plans to review options for reconfiguring and expanding the Ohio Lima refinery to process heavy crude oil and bitumen, providing additional future investment in the community.”
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