Canada wants to expand in North American energy market on Canada's terms

Ralph Goodale, Natural Resources Minister, says Canada wants to expand its interests in the North American energy market, and -- most importantly, he says -- on Canada's terms. Canada will refuse to take part in any discussions concerning a continental energy policy, says Ralph Goodale.
Canada's interest is in expanding the North American energy market, Mr. Goodale added. But, the country is not interested in pursuing the proposal put forward by George Bush, the US President, for a continental policy aimed at reducing America's dependence on energy from unstable regions, such as the Middle East.
"I would underscore, whether it's bilaterally with Mexico, or bilaterally with the US or tri-laterally with both of them, that Canada is not engaged -- and I underscore that word -- we are not engaged in any discussion about a so-called North American energy policy," said Mr. Goodale, who was on an energy trade and investment mission in Mexico. "We are interested in market expansion. We are not interested in policy subordination and I think that's an extremely important distinction."

Mr. Goodale and a group of 30 companies with energy interests met with leading Mexican politicians and business people with the aim of increasing investment and trade between the two countries. Canada has more than $ 1-bn invested in various Mexican energy developments. The leading companies in the foray to the south include Enbridge, TransAlta Utilities and Cameco, and Mr. Goodale believes that reforms being proposed by Mexico's legislative and regulatory regime for oil and gas will increase business opportunities for Canadian companies.
In the wake of the terrorist attack on the United States, Ottawa is willing to co-operate on a range of security and military issues, but is wary of appearing to give up any sovereignty; for that reason, it wants to avoid policy descriptions termed continental or harmonized when it comes to working with the United States.

But Mr. Goodale said there will be increased demand for Canada's energy products from the US and Canada is happy to participate in that increased market. "The further expansion of North American energy markets can certainly hold very significant economic development opportunities for us -- in investment, jobs, growth, regional development, northern development, aboriginal advancement and technological sophistication. "But we will insist that as that development opportunity is pursued, that it is pursued on Canadian terms and conditions with full respect for Canadian needs and priorities," Mr. Goodale said.
Even a series of acquisitions of Canadian energy companies by American business interests doesn't concern Mr. Goodale. This month, Houston-based Burlington Resources bought Canadian Hunter Exploration -- one of Canada's last remaining top natural gas producers -- for $ 3.3-bn in cash. "If there were investment restrictions erected then you would find the investment would go elsewhere and indeed the Canadian energy industry would atrophy," Mr. Goodale said.