Monday, March 14, 2011

Oil and politics in Libya and Canada

Suncor is one of Canada's largest oil companies, and has significant oil production based in Libya.  Foreign companies such as Suncor will be forced to choose sides in the Libyan rebellion, assuming the rebels hang on in some sort of fashion to the eastern part of the country where the majority of oil production is based.  Do they side with the Gadhafi regime, or do they side with the rebel Council?  Talk about a choice between the devil and the deep blue sea!

An interesting article in today's Globe and Mail titled Oil producers in Libya face political conundrum discusses this very issue, and reports the following: "Both rebel forces and those loyal to Col. Moammar Gadhafi are now threatening to treat foreign corporations according to the sides chosen by their home countries. For Canadian companies, that could mean a potentially disastrous result if rebel forces are not able to overpower the government, especially as Ottawa strengthens its anti-Gadhafi rhetoric and pledges to meet with the opposition."

You can bet Canadian companies formerly doing work in Libya will want to continue to make some profit from their efforts, so they will be leaning on the Canadian government to do something.  But what would that "something" be?  Who knows...ditto for the other foreign companies with business interests in Libya.

As I predicted yesterday, nothing has come out of the talks held earlier today in Paris by the western countries who could effect a change in the balance of power in Libya's rebellion.  They are still sipping their expensive bottled water and delivering the same meaningless demands for Gadhafi to leave Libya, which will not happen any time soon.  I have to give Gadhafi and his son Said credit - at least they are believable when they threaten utter destruction of the rebels and their followers.  I may not like the message, but I believe it...unlike the messages from the western countries, who are now unbelievable and bordering on irrelevant.

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