Oil-seeking China steps on US toes

The United States has long regarded Central and South America as part of its backyard; and Canada as an extension of its front porch.

But recent forays by China into the Western Hemisphere are challenging US influence. They are part of Beijing’s frenetic global search for large supplies of oil-based energy.
The search has recently taken it to Canada and Venezuela, which together provide about 25 per cent of US oil imports.

While China is not yet buying oil that might otherwise have gone to the US, the Bush Administration is watching closely as state-owned companies from China clinch long-term supply deals in the neighbourhood that could threaten America’s energy security.

Reflecting this concern, the US Government Accountability Office – the non-partisan investigative arm of Congress – last month began a study of the risk of potential oil supply interruptions from Venezuela, which is the source of over 10 per cent of US crude oil imports.

Meanwhile, Canada and China on January 20 signed a joint Statement on Energy Co-operation in the 21st Century during a visit to Beijing by Canadian Prime Minister Paul Martin.

New Zealand Herald