OREANDA-NEWS. December 06, 2011. The China-US race to secure Crude Oil supplies heats up yet another degree as Canada plans to ship its oil to the dragon nation. China is the world's second largest consumer of crude oil just behind the US and both countries have been very aggressive in the matter of investing and securing its energy needs.

Canadian Prime Minister Stephen Harper had earlier said that his country will try to secure supply contracts in Asia after its talks with the US with regard to the Keystone pipeline went into a limbo. The Wall Street Journal quoted Canadian energy minster as saying "We favor the construction of infrastructure that will move resources to markets that want them” adding that they were particularly interested in China.

With the loss of Libyan oil still at large in the physical markets and the possibility of further supply disruptions, especially from the nuclear weapon accused Iran, Canadian supplies could help China to secure its energy requirements.

Canada's Crude Oil from the oil sands are of a heavier and lower quality with an API gravity of around 20. However, China is one of the few nations with the ability to process a variety of crude oil variants including the Canadian oil.

As such, a strong and long lasting trade relationship may be on the cards especially considering that Canada is not subjected to the kind of political unrest now faced by many oil producing nations in the Middle-East.