Madam Speaker, I rise today to raise an issue of great importance to our Nation that I fear is being overlooked, the future of the oil sands of Alberta, Canada. Aside from Saudi Arabia's oil fields, these sands contain the largest deposits…
Madam Speaker, I rise today to raise an issue of great importance to our Nation that I fear is being overlooked, the future of the oil sands of Alberta, Canada. Aside from Saudi Arabia's oil fields, these sands contain the largest deposits of oil in the world, and thus, could be critical to our future energy security.
Just a few months ago the Chinese National Offshore Oil Company, CNOOC, attempted to purchase Unocal.
CNOOC is very different from most other companies because it is owned by the Chinese government. It could be directed to sell oil only to the Chinese, taking a large portion of its resources off of the international oil market. As a result of this possibility, the sale of Unocal raised great concerns in the American public. If it had occurred, the Chinese government would have gained control of a significant American player in the energy industry, just as we are struggling with sky-rocketing gas prices and concerns about a secure supply, especially from the volatile Middle East.
Although CNOOC withdrew its bid to buy Unocal, it did not stop looking for other sources of oil. The interest of Chinese companies in Canadian oil is especially troublesome. In May, CNOOC purchased almost 17 percent of MEG Energy Corporation, a Canadian-owned company that owns oil sand leases on almost 33,000 acres of Alberta land. Another Chinese company, SinoCanada Petroleum, has formed a joint venture with Canada's Synenco Energy to develop oil sands projects in Canada which are estimated to produce 5 tons of synthetic crude oil. These initial investments illustrate the worrisome growing Chinese interest in the estimated 178 billion barrels of recoverable oil in Alberta.
Canada is our highly respected neighbor, and our strong relationship has provided many benefits for both of our countries. Canada is our greatest trading partner with more than $1 billion a day in goods and services traded. Canada exports almost 99 percent of its oil to the U.S., and the U.S. imports more oil from Canada than from any other country, with 16 percent of our total imports coming from our northern neighbor. With the increasing development of Alberta's oil sands, this percentage could significantly increase.
If CNOOC had purchased Unocal, it would have owned an American company but few oil resources in North America. But now, China is interested in not just in North American companies, but in Canadian oil reserves as well, the most secure source of oil outside of our own borders.
As the Chinese become more involved, the U.S. needs to become more engaged with the Canadian government and the provincial government of Alberta in discussing the potential ramifications. Let me be clear on this: Neither Congress nor the Bush Administration can or should ever be seen to be telling Canada or Alberta what to do. However, our government should utilize our good relations and strong economic ties to learn more about the Chinese interests in Canadian oil and to discuss the potential shared security concerns.
The administration has shown an interest in this important issue. Treasury Secretary Snow visited Alberta in July and Vice President Cheney was scheduled to tour the area in September before Hurricane Katrina forced him to cancel his visit. The Senate sent a delegation to Alberta in August. I strongly encourage the Vice President to reschedule his trip, as well as encourage other Members of Congress to travel and to learn more about this close energy source.
This is a critical time to be concerned about secure energy supplies for the future of the United States. We need to be more diligent about conservation and energy efficiency. We need to be working harder to develop alternative sources of energy. But no matter what we do and how successful we are in weaning ourselves from oil, gas and other conventional energy sources, our Nation will still be in need of foreign fossil fuels for many years to come. In the unpredictable world in which we live today, it would be best to rely on secure sources of energy close to home.
That is why I urge Congress and the administration to learn more about Alberta's oil sands and the potential to supply U.S. energy needs. We must continue to work closely with our neighbors on the north on this important security issue.