Friday, February 4, 2011

Nothing up my sleeve...

Magicians are the masters of diversion. Sleight of hand is, not to put too fine a point on it, their stock and trade. They will distract you with their left hand while their right one is busy palming the coin or card, or whatever there was on the table.


The point is that conjury is not about being able to alter the universe, but simply altering your perception of it.

Of course, you can always choose to look at the hand that’s not thrust in your face, or look to the side of the stage to see who is pulling the wires and harnesses.

On Monday, Prime Minister’s Harper’s office announced that he would be in Washington this Friday to meet with President Obama in the White House. Since then (3 to 4 short days) all of the talk has been about border security and immigration. Senator Joseph Lieberman’s comments about security have only what the appetite of those who believe that border security and preventing another 9/11 is code for surrendering Canadian sovereignty.

Most agree that nothing tangible will come from this meeting, except a photo op and the agreement to negotiate a bilateral agreement for sometime in the undetermined future.

Okay, that’s all well and good, and probably true – as far as it goes – but really?

In my humble observation, visits to Washington are usually announced weeks and months – not hours and days – before they actually happen. If you have to wait a couple of weeks to get an appointment with your dentist or GP, how can you get in to see the world’s most powerful, and well-guarded, human being in 72 hours?

I’m not cynical, but with the economy in the toilet, the Republicans in control of the House, revolutions in a bunch of Middle Eastern countries, and a baker’s dozen of state Attorneys-General trying to have courts overturn what would be your political ‘legacy’ of healthcare reform, would you not have more productive uses of your time than having a chinwag with Steve?

Border security and trade are, in essence, what’s contained in the magician’s left hand.

So, what’s in the right?

The answer to that will cost you about ten American dollars – literally.

On January 31st – the day that Harper’s visit was announced, the New York Times posted an article by Clifford Krause, which said, in part:

“In case you haven’t noticed, oil prices in the United States differ from those in the rest of the world. Usually the variance is just a few dollars, but over the last few weeks the difference between West Texas Intermediate prices and Brent crude, which is sourced in Europe’s North Sea, has widened to about $10.


“That means that while Americans are buying oil at just over $90 a barrel, the price Europeans and Asians are paying is already over $100. And if the turmoil in Egypt spreads to its oil fields and the Suez Canal, a major transit point for European supplies, that spread could expand even more.

“But so far the spread, which began widening before demonstrators took to the streets of Cairo, has little to do with the Middle East. It is mostly about a big buildup of crude in the Cushing, Okla., oil depot. Cushing is flush partly because demand in the United States is only slowly recovering. But most of all, it is a result of increasing imports of refined synthetic oil produced from Canadian oil sands, now the single most important source of imported oil.

“Canadian oil producers love the way that Americans are growing increasingly dependent on them as opposed to our trading partners in the Persian Gulf. It is no coincidence that while most of the world’s stock exchanges experienced declines on Friday related to the crisis in Egypt, the Canadian stock market rallied. Particularly strong were the oil sands company stocks.

“The shifting oil trade and the Egyptian crisis come as the controversy over the Keystone pipeline is heating up. The State Department needs to decide whether to grant approval to the pipeline, which is designed to substantially expand the flow of Canadian synthetic crude to the United States.”

The Americans, aware that the troubles in Egypt have a direct impact on the Suez Canal, and a more than indirect portent for Arab states that actually have oil reserves, realize that Canadian oil is the only thing preventing West Texas Intermediate from spiking by ten percent overnight. They also know that the discussions to expand the flow of that oil – through the proposed Keystone XL pipeline – hinge on a verdict by the US State Department.

Even beyond this, there are bigger issues, including the possibility of a Pacific Gateway pipeline to Prince Rupert, BC – one that would make this oil accessible to Japan, India, and the People’s Republic of China.

While I do not want to speculate as to what today’s visit will bring, here is a likely scenario:

1. A photo op where each leader expresses admiration for one another and their people, including the cursory history of friendship, values, fight against terror, yadda, yadda;

2. A commitment to work to negotiate and hammer out a trade deal that will be in the best interests of both nations;

3. A further commitment to have a frank, yet respectful dialogue about outstanding issues that, despite their visibility, should never detract from the larger, more positive relationship.

Then, in a week or two, the State Department will rubber stamp Keystone XL, and the White House will try to get people like Lieberman and the critics of the oil sands to put a sock in it for the greater good.

Green energy is all well and good, but Washington beltway jockeys know that those plans take years and decades, while the fecal matter hitting the oscillating device could take only days.

Then again, everything from the shore of this lake looks a bit different.