ENERGY SECURITY: "USA CAN COUNT ON ENERGY SUPPLY FROM CANADA," HARPER SAYS

Bloomberg, 6 July 2006
 HYPERLINK "http://www.bloomberg.com/apps/news?pid=20601082&sid=aBhHNk6aXVQA&refer=canada" \t "linkWin" http://www.bloomberg.com/apps/news?pid=20601082&sid=aBhHNk6aXVQA&refer=canada

July 6 (Bloomberg) -- Canadian Prime Minister Stephen Harper said U.S. President George W. Bush can count on a secure flow of oil and gas from its biggest energy supplier and trading partner after the price of crude surged to a record.

Canada, which sits on the largest pool of oil reserves outside of the Middle East, can help the U.S. meet its need for stable energy supplies as long the two countries maintain a "secure and prosperous" relationship, Harper said today.

"I don't see any difficulty in the United States being able to count on Canada," Harper said in an interview with Bloomberg Television at the Canadian embassy in Washington. "We believe that a good economic relationship between Canada and the United States will be vital to the United States' long-term security needs."

Harper, 47, discussed Canada's energy supply with Bush today in his first visit to Washington as prime minister, following his January election victory. Harper is trying to bolster relations with the U.S. to settle a trade dispute over softwood lumber and to break an impasse over border security.

Crude reached a record intraday price of $75.40 a barrel yesterday after North Korea test fired at least seven missiles, exacerbating oil supply concerns. Canada is alone among the world's biggest economies as a major energy exporter. The country is the second-largest exporter of natural gas behind Russia, and ninth-largest exporter of oil.

"Obviously the most secure, large and available market to Canada is the United States," Harper said in the 10-minute interview.....

Copyright 2006, Bloomberg