JOIN US

Levant: Who benefits from applying the ‘new benefit test’ to the CNOCC-Nexen deal?

By: /
9 August, 2012

Most of Nexen’s operations are in other countries — in Colombia, the North Sea and offshore Africa. Only 45,000 barrels of oil a day are produced in Canada — or about 1.5 per cent of our national production. And, since all of our pipelines go south, that oil must either be bought by Canadians or Americans.

No matter who owns the share certificates of a Canadian oil company, that company must operate under Canadian laws and regulations. Labour laws, environmental laws, tax laws — it is all Canadian ethical standards that must be applied, whether the shareholder is your neighbour or a foreign dictatorship.

I’d rather a Canadian or American shareholder own Nexen. But China can do no harm with it. On the other hand, blocking the sale not only harms our global reputation as free traders, it also destroys the property rights of Canadians to sell their shares to whomever they choose.

Before you click away, we’d like to ask you for a favour … 

Open Canada is published by the Canadian International Council, but that’s only the beginning of what the CIC does. Through its research and live events hosted by its 18 branches across the country, the CIC is dedicated to engaging Canadians from all walks of life in an ongoing conversation about Canada’s place in the world.

By becoming a member, you’ll be joining a community of Canadians who seek to shape Canada’s role in the world, and you’ll help Open Canada continue to publish thoughtful and provocative reporting and analysis.

Join us